Tech companies are hiring older candidates. This may come as a surprise to many, but the industry is now seeking individuals with several years of experience under their belt, enabling them to hit the ground running.
The trend was brought to light by SignalFire with their 2025 State of Talent Report. A venture capital firm that tracks workforce movement, this year’s report found that after every experience level was negatively impacted in 2023, roles for mid- and senior-level roles improved in 2024, while entry-level roles continued to decline.
Per the report:
- Big Tech: New grads now account for just 7% of hires, with new hires down 25% from 2023 and over 50% from pre-pandemic levels in 2019.
- Startups: New graduates make up less than 6% of hires, with new hires down 11% from 2023 and over 30% from pre-pandemic levels in 2019.
On the other side of the coin, applicants with more than 10 years of experience rose by 27% from 2023 to 2024. For applicants with five to 10 years of experience, the results are even higher, with a 40% year-over-year increase.
While the impact AI is having on entry-level responsibilities is part of the reason for the change, according to Paul Fogel of Korn Ferry, “The shift may have more to do with a tightening job market in tech than any new appeal for older workers.” Compounding the issue is the correction from the over-hiring entry level roles in the years after the pandemic. As well as the need to hire applicants that can get up to speed on their own at companies that scaled back on their training and onboarding capabilities.
According to the report, “It’s not just a hiring slowdown, it’s a shift in expectations. Today’s tech employers aren’t looking for potential, they’re looking for proof. That’s left new grads stuck in a Catch-22: you need experience to get the job, but you need the job to get experience.”
This is good news for Generation X and Baby Boomers. The economic uncertainty of the past few years has prompted many to postpone their retirement. “According to one survey last year, two-thirds of workers say they are planning for a “phased retirement” by gradually reducing how much they work over several years.”
Historically, startups have not been the domain of older employees. The nature of early-stage companies did not provide the type of opportunities that experienced workers sought, at least until the company had matured, which could take five or 10 years. With the rise of fractional work, more senior-level people are working with early-stage companies in an interim or advisory capacity. This age group has become a favorite of private-equity portfolio companies.
With a preference for workers with some experience, junior-level roles are being filled by experienced candidates rather than new graduates. This could lead to long-term issues of not having enough younger employees to fill positions when existing employees leave or are promoted.
AI is not necessarily eliminating roles, but is instead raising the bar for entry. The best advice for younger candidates is to develop their AI and machine learning skills alongside their other skills, making them more attractive to hiring managers.
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