Graduates Trapped in 'AI Doom Loop': Job Search Frustrations Amid Rising Tech Industry Challenges
August 10, 2025
A study by the Federal Reserve Bank of New York highlights the troubling trend for recent computer science graduates, who face unemployment rates between 6.1% and 7.5%, significantly higher than their peers in fields like biology or art history.
The once widely held belief that learning to code guarantees financial prosperity is now being challenged by these stark job market realities.
Similarly, Manasi Mishra, a 21-year-old Purdue graduate, faced a harsh reality; despite expectations of a six-figure salary, she received only one interview for a position at Chipotle, which she ultimately did not secure.
Overall, the current job market reflects a troubling cycle where graduates are caught in an endless loop of applying and being rejected, raising concerns about the future of entry-level positions in tech.
Graduates are increasingly describing their job search experience as being trapped in an 'AI doom loop,' where they utilize AI tools to apply for numerous positions, only to be swiftly filtered out by automated rejection systems employed by companies.
Zach Taylor, a recent Oregon State graduate, exemplifies this struggle, having applied to nearly 6,000 tech jobs but securing only 13 interviews, facing rejections even from fast-food chains like McDonald's due to perceived 'lack of experience.'
This alarming unemployment rate is compounded by the rise of AI programming, which is contributing to the elimination of junior positions in the tech industry, particularly as major companies like Amazon, Meta, and Microsoft continue to implement layoffs.
Despite these challenges, there are glimmers of hope; for instance, Mishra eventually secured a job by creatively leveraging TikTok to draw attention to the difficulties faced by job seekers in the current market.
Summary based on 3 sources
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Sources

TechCrunch • Aug 10, 2025
The computer science dream has become a nightmare
Yahoo Finance • Aug 10, 2025
The computer science dream has become a nightmare
GreatAndhra • Aug 10, 2025
The Computer Science Dream Turns Into a Harsh Reality