Entry-Level Tech Jobs in NYC Plummet 50% Since 2022 Amid AI Surge

New York City's tech sector faces a bifurcated reality: artificial intelligence adoption is accelerating rapidly while entry-level job opportunities are vanishing, according to new research from the Center for an Urban Future.

Job postings for entry-level tech positions have dropped by half since 2022, even as overall employment in the city's tech industry remains stable. The decline marks a significant shift in an industry that has historically provided accessible pathways to well-compensated careers for young workers, including those with two-year degrees.

Why it matters

The collapse in entry-level tech hiring threatens to close off economic mobility for a generation of New York workers just as AI creates demand for experienced professionals. Organizations like the Marcy Lab School have seen employment rates for graduates fall 35% since 2023, while training programs are scrambling to retool curricula. The divergence suggests AI may be reshaping labor markets in ways that benefit incumbent workers while creating new barriers to entry.

AI adoption soars, but jobs remain

A Federal Reserve Bank of New York survey released in early September showed 60% of service firms now use AI, up from 40% a year ago. Manufacturing adoption doubled to 50% over the same period.

Yet the predicted jobs apocalypse hasn't materialized for existing workers. New York City added approximately 60,000 jobs over the past year through July, according to state Labor Department data, including gains in finance and professional services—two sectors rapidly implementing AI tools.

Companies most aggressively adopting AI are typically growing and expanding their workforces, said Ben Zweig, an economist and founder of workforce intelligence firm Revelio Labs. The New York Fed report reached similar conclusions: 10% of AI-using companies are hiring more workers, particularly those with AI expertise, while fewer than 5% have cut staff.

The entry-level squeeze

The Center for an Urban Future found that companies with the highest exposure to generative AI saw the steepest declines in entry-level positions—roles that previously offered average salaries around $89,000 to new hires.

"Entry-level postings have fallen off a cliff and the first rung of the ladder in tech is under pressure," said Jonathan Bowles, the center's executive director. "Those positions for young people with limited experience are harder to come by and there is intense competition."

Training organizations are feeling the impact. Per Scholas is scaling back software engineering courses while incorporating AI across its curriculum. The Marcy Lab School reported a 35% decline in its employment rate since 2023.

Meanwhile, demand for workers with AI skills has grown 20% since 2022 across industries including professional services, finance, healthcare, and education.

Proposed solutions

The Center for an Urban Future recommends several interventions: six-month paid internships for emerging tech workers, a workforce readiness fund for City University of New York programs, and recruiting 100 large employers to offer AI-oriented internships.

The Mamdani administration has provided CUNY with $5 million to strengthen AI offerings. The university system has launched 113 campus-led initiatives through its AI Innovation Fund and partnered with companies like Accenture to offer free AI courses.

Greg Morrisett, dean of Cornell Tech, noted that even in coding—where AI has made significant progress—companies still need engineers to manage processes. "We overhype things," he said.

These details were first reported by Greg David for The City Reporter.