US computer science graduates return to school as jobs lost to AI

Students walk across the San Jose State University campus between classes, Wednesday. Korea Times photo by Park Ji-yeon

SAN JOSE, Calif. — “About 40,000 students enrolled this fall semester at San Jose State University, the largest incoming class in the school’s 168-year history,” President Cynthia Teniente-Matson said in a welcome email to freshmen on Aug. 25.

Located in Santa Clara County, California, the university is known for its high job placement rates at nearby big tech companies. Earlier this year it surpassed Stanford to rank No. 1 in international student employment outcomes.

But behind the record enrollment lies the reality of graduates struggling to find work as artificial intelligence transforms the labor market.

Since last year, major tech firms investing heavily in generative artificial intelligence (AI) have carried out mass layoffs. Demand for entry-level developers has plummeted, as entry-level jobs tend to be most vulnerable to automation, leaving many computer science graduates with no clear career path.

Unable to land jobs, more students are returning to campus, fueling record enrollment near Silicon Valley.

On Wednesday, the San Jose State campus was bustling with students carrying laptops and resumes into cafeterias and lounges. But their faces looked anxious.

Many have failed to clear tougher hiring bars or lost offers because of President Donald Trump’s immigration policies, which added uncertainty for foreign graduates.

Diana Omran, a computer science master’s student, compared the moment to the industrial revolution.

“Just as factories replaced manual labor, AI can replace us. I think I need to adapt,” she said. “I am applying everywhere, even for jobs I don’t really want, because the first job is just a foot in the door.”

Diana Omran, a computer science master’s student at San Jose State University, speaks about how artificial intelligence is reshaping the job market, Wednesday. Korea Times photo by Park Ji-yeon

Even experienced workers head back

The trend is not limited to new graduates. Choi Jung-hyun, which is an alias, who earned a master’s degree in computer science from a New York university and worked at a big tech company for three years, has reenrolled this semester to study AI.

“I saw not only entry-level but junior roles being replaced by AI. That’s why I came back,” he said, noting that many career workers are making the same choice.

Tech giants are reshuffling aggressively. Google offered voluntary retirement across departments in June, while Microsoft cut 15,000 jobs this year.

Analysts say these moves are part of broader cost-saving measures to offset multibillion-dollar AI investments.

Students delay graduation, add majors

Some undergraduates are also trying to hedge their bets. “I transferred here for the Berkeley degree, but with the job market this tough, I am considering a double major," said Aaron Hwang, a third-year computer science student at UC Berkeley. "I may have to think beyond tech after graduation.”

Charlie Dao, a senior in chemical engineering, said many of his mentees in computer science are postponing graduation or adding another major after failing to find internships. “AI has saturated the market,” he said, “so students are either going to graduate school or shifting to different fields.”

Venture capital firm SignalFire reported that demand for junior roles has dropped significantly, with the share of new engineering graduates hired by the Big Seven — Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla — falling by more than half since 2022.

Charlie Dao, a senior in chemical engineering at UC Berkeley, says his computer science mentees are delaying graduation or adding double majors after failing to find internships. Korea Times photo by Park Ji-yeon

AI squeezes, then recruits

Startups are following a similar pattern, using AI tools instead of hiring entry-level workers.

“It’s true that big tech and startups alike have raised the bar for new graduates,” said Scott Xiao, a partner at Goodwater Capital, a venture capital firm known for backing Coupang and Toss. “AI allows startups to operate productively without hiring inexperienced staff.” SignalFire estimated that new graduates made up less than 6 percent of startup hires last year.

At the same time, tech companies are willing to pay staggering sums for top AI talent. Meta reportedly offered up to $100 million to lure engineers from OpenAI. This polarization has left little room for entry-level or junior developers.

Chris Pollett, a San Jose State computer science professor since 2001, said the cycle is familiar. “We are seeing oversupply at the bottom. After the dot-com bust, the 2008 crisis and the pandemic, enrollments jumped when job markets froze. This year we saw the largest incoming class.”

Despite the gloom, some believe the contraction is temporary. As AI applications diversify, new niches could open. “Large language models can handle sophisticated tasks, but fields like security are branching out, creating new needs for people and new methods,” Pollett said.

Xiao agreed. “Hiring will not shrink forever. Startups can’t do everything on their own. Personalized software demand is growing, and each individual may soon have unique systems. Maintaining them will require more people. At some point, opportunities will return to new graduates,” he said.

This article from the Hankook Ilbo, a sister publication of The Korea Times, is translated by a generative AI and edited by The Korea Times.