It’s that we are heading towards a big recession.
As in all recessions, people come up with all sorts of reasons why everything is fine until it can’t be denied anymore. This time, AI was a useful narrative to have lying around.
2030 will be 2020 all over again.
When I started a CS degree in 2003, we were still kinda in the "dot com crash has happened, no-one will ever hire a programmer again" phase, and there were about 50 people in my starting class. I think in the same course two years ago, there'd been about 200. The 'correct' number, for actual future demand, was certainly closer to 200 than 50, and the industry as a whole had a bit of a labour crunch in the early 10s in particular.
This means that they inflate programmer salaries, which makes it impossible for most companies that could benefit from software development to hire developers.
We could probably have five times as many software developers as we have now, and they would not be out of work; they would only decrease average salaries for programmers.
Why would this be the case? Many programmers join Google or Meta (or similar tier companies) and immediately double or triple their income. Software salaries are famously bimodal and people often transition from the lower mode to the higher mode practically overnight.
In fact (and I'm not an economist) I conjecture that the lower mode exists because the upper mode exists. That is, people purposefully don't really care what their salary is (i.e. don't put upward wage pressure) when they're at lower-mode companies because they know one day they'll make the leap to the upper-mode. In other words, the fact that Google-tier companies pay well allows other companies to pay poorly because those guys are just padding their resumes to get a 350k job at Google and don't really care whether Bank of Nowhere pays them $90k or $110k.
1) fewer students are studying computer science, I'm faculty at a top CS program and we saw our enrollment decline for the first time ever. Other universities are seeing similar slowdowns of enrollment [1]
2) fewer immigrants coming to the united states to work and live, US is perhaps looking at its first population decline ever [2]
3) Current juniors are being stunted by AI, they will not develop the necessary skills to become seniors.
4) Seniors retiring faster because they don't want to have to deal with this AI crap, taking their knowledge with them.
So we're looking at a negative bubble forming in the software engineering expertise pipeline. The money people are hoping that AI can become proficient enough to fill that space before before everything bursts. Engineers, per usual, are pointing out the problem before it becomes one and no one is listening.
[1]: https://www.theatlantic.com/economy/archive/2025/06/computer...
[2]: https://nypost.com/2025/09/03/us-news/us-population-could-sh...
2. It looks like rates will keep going down.
3. Fewer people are going into CS due to the AI hysteria. You might say oh there's a 4 year lag, but not quite. We should see an immediate impact from career changers, CS grads choosing between career and professional school, and those switching out of CS careers.
The tech AI fear hysteria is so widespread that I've even heard of people avoiding non-SWE tech careers like PM.
I wonder how that would even be measured? I suppose you could do it for roles that do the same type of work every day. I.e. perhaps there is some statistical relevance to number of calls taken in a call center per day or something like that. One the software development side however, productivity metrics are very hard to quantify. Of course, you can make a dashboard look however you want, but impossible, essentially to tie those metrics to NPV.
I'm legit not sure if that's sarcasm or not
Who is we? One country heading into a recession is hardly enough to nudge the trend of "all things code"