The 2025 software engineering job market presents a major contradiction: companies are inundated with an unprecedented volume of applications, yet hiring managers struggle to find and hire qualified candidates. Based on insights from over 30 tech hiring managers and recruiters, the market is characterized by a high signal-to-noise problem, making it tough for both applicants and employers.
Key Findings from Hiring Managers
- Massive Application Volume: Open roles frequently receive over 1,000 applications, with platforms like LinkedIn being cited as a source of high-volume, low-quality candidates. This has led some companies to abandon it for inbound applications.
- Ineffectiveness of Inbound Hiring: Despite the flood of resumes, a very small fraction of hires (around 10%) come from direct online applications. The majority of these applicants do not meet the basic qualifications for the roles.
- Top Talent Remains Scarce and Competitive: Standout, experienced engineers are difficult to find and are often not actively looking. The most successful hires are made through referrals and direct outreach (sourcing). When top candidates are on the market, they typically have multiple competing offers.
- Employers are More Selective: The high number of applicants has made companies more risk-averse and “picky,” often holding out for a candidate who perfectly matches all criteria rather than one who is simply a strong fit.
- Emerging Trends: There is a growing demand for specialized roles like product engineers and founding engineers, especially in the AI sector. Concurrently, issues with fake applicants and candidates using AI to cheat in interviews are on the rise.
Conclusion
The tech job market is a paradox. For employers, the challenge is sifting through immense noise to find qualified candidates, pushing them toward proactive sourcing and referrals. For job seekers, the “spray and pray” application method is largely ineffective. Success in this market increasingly depends on networking, building a strong reputation, and being discovered through channels other than a simple application portal.
Mentoring question
Given that most successful hires come from referrals and direct outreach rather than online applications, what is one concrete action you can take this week to strengthen your professional network or increase your visibility to recruiters?
Source: https://newsletter.pragmaticengineer.com/p/state-of-the-tech-market-in-2025-hiring-managers
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