level: business
signalfire's state of talent report tracked careers across millions of employees and over 80 million companies. it found that engineering was the most resilient job function in 2025. while total hiring at large tech firms dropped 25% compared to 2019, engineering roles fell only 11%. engineers made up 55% of all new hires at 12 major tech companies last year, up from 46% in 2019. early-stage startups hired 7% more engineers in 2025 than in 2019.
the data challenges the narrative that ai coding tools are replacing engineers. asher bantock, signalfire's head of research, said if ai were truly substituting for engineering talent, engineering hiring would be the first to decline. instead, engineering headcount is growing faster than most other job functions. nvidia ceo jensen huang argued that ai makes engineers busier, not obsolete, by handling routine coding and pushing them to generate new ideas.
the trend suggests a jevons paradox: greater efficiency from ai increases demand for engineers because the work expands. bantock noted that engineers are suddenly more productive, and there is endless work for them to do. anthropic's head of economics also reported no significant ai-driven unemployment effects yet. the findings indicate that ai is augmenting rather than replacing engineering roles for now.
why it matters: it shows ai is currently boosting demand for engineers rather than eliminating jobs, which affects workforce planning and investment in ai tools.