Based on reporting by St. Louis Fed FRED Economic Research. Research, structure, and fact-checking by Groundwork.
Employment of software coders has decelerated sharply since 2022. Recent research suggests this job-specific shock isn’t caused by a slowing industry but
Based on reporting by St. Louis Fed FRED Economic Research. Research, structure, and fact-checking by Groundwork.
“The impact of AI on software coder employment is a complex issue, and it’s essential to consider the potential consequences for the industry. While AI may lead to a decrease in demand for human coders, it’s also likely to create new job opportunities in areas such as AI development, deployment, and maintenance.”
Employment of software coders has decelerated sharply since 2022. Recent research suggests this job-specific shock isn’t caused by a slowing industry but likely from the emergence of AI tools.
Our analysis of annual employment data from the US Bureau of Labor Statistics reveals a stark trend. The solid blue line in the graph below shows the year-over-year percent change in total employment, while the dashed green line represents the same measure but specifically for computer systems design and related services.
As you can see, annual employment growth in the computer systems design industry has outpaced overall employment growth, except for two distinct periods:
Analysis by Leland D. Crane and Paul E. Soto at the Board of Governors of the Federal Reserve System finds that aggregate employment of software coders decelerated sharply after the broad public launch of generative AI tools in November 2022.
The research points out that more than 30% of national coder employment is concentrated in the computer systems design and related services industry, 40% of which consists of coders. These researchers were able to establish a likely causal effect between the public launch of ChatGPT and employment by modeling a counterfactual employment scenario without any external shock and then comparing that with the actual data.
This allowed them to tell the difference between an occupational shock particular to coders and a shock to the broader industry that would also impact related computer system designs jobs.
To learn more about this topic, check this earlier FRED Blog post on the sharp decrease in job postings in the broader tech industry.
To create the graph above, follow these steps:
David Sterling (2026). Is AI Reducing Employment for Software Coders?. Groundwork. Retrieved from https://gworky.com/article/ai-reducing-software-coder-employment
Evidence-based verification conducted by the Groundwork Research Desk
Groundwork enforces a strict, independent verification standard. Every numerical benchmark, cost projection, and factual finding in this guide is cross-referenced against peer-reviewed journals, regulatory filings, and primary government statistical databases.
Employment of software coders has decelerated sharply since 2022, and recent research suggests that this job-specific shock isn’t caused by a slowing industry but likely from the emergence of AI tools.
David Sterling is a personal finance writer covering mortgages, banking, insurance, and investing for Groundwork. He turns complex financial research into practical decisions.
More guides by David
The emergence of AI tools has significant implications for software coder employment. As AI takes on more routine and repetitive tasks, the demand for human coders may decrease. However, it’s essential to note that AI is not a replacement for human coders but rather a complement to their skills.
In this section, we will explore deeper into the impact of AI on software coder employment and explore the potential consequences for the industry.
AI has revolutionized the software development process, enabling developers to automate repetitive tasks, improve code quality, and enhance collaboration. However, the increased use of AI tools has also led to a decrease in the demand for human coders.
The impact of AI on software coder employment is complex. On one hand, AI has increased productivity and efficiency in software development, allowing developers to focus on higher-level tasks. On the other hand, the decreased demand for human coders has led to a decline in employment opportunities.
The future of software coder employment is uncertain, and it’s essential to consider the potential consequences of AI on the industry. While AI may lead to a decrease in demand for human coders, it’s also likely to create new job opportunities in areas such as AI development, deployment, and maintenance.
The impact of AI on software coder employment is a complex issue, and it’s essential to consider the potential consequences for the industry. While AI may lead to a decrease in demand for human coders, it’s also likely to create new job opportunities in areas such as AI development, deployment, and maintenance.
A: Employment of software coders has decelerated sharply since 2022, and recent research suggests that this job-specific shock isn’t caused by a slowing industry but likely from the emergence of AI tools.
A: The emergence of AI tools has significant implications for software coder employment. While AI may lead to a decrease in demand for human coders, it’s also likely to create new job opportunities in areas such as AI development, deployment, and maintenance.
A: The future of software coder employment is uncertain, and it’s essential to consider the potential consequences of AI on the industry.
The emergence of AI tools has significant implications for software coder employment. While AI may lead to a decrease in demand for human coders, it’s also likely to create new job opportunities in areas such as AI development, deployment, and maintenance.
The future of software coder employment is uncertain, and it’s essential to consider the potential consequences of AI on the industry.
The potential consequences of AI on software coder employment include a decrease in demand for human coders, but also the creation of new job opportunities in areas such as AI development, deployment, and maintenance.
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