SignalFire, an emerging data-driven venture capital firm, recently released some key findings. These findings unveil significant shifts in the hiring landscape for entry-level tech sector positions. According to the “State of Talent Report 2025,” the world of work is undergoing a massive transformation. In fact, some of the largest technology firms cut their hiring of new graduates by a quarter in 2024 over 2023. This trend is part of a larger pattern, as tech companies are focusing more on hiring for experienced professionals, not new grads.
SignalFire uses data analytics to map job changes between more than 600 million employees and 80 million companies based on LinkedIn. The severity of the impact on startup companies Graduate recruiters, particularly startups, had a dip in recruitment. In fact, they pointed to an 11% decrease from FY 2023 to FY 2024. The company has not disclosed how many of their graduates it employed this year. As the spokesman added, it’s in the thousands.
Hiring for entry-level positions at all levels has dried up. According to the report, tech companies were most frequently looking for candidates with two to five years of experience. SignalFire predicted a 27% hiring increase for this seniority range within large tech companies. Likewise, the startup ecosystem has increased its hiring in this category by 14%, showcasing a need for more seasoned professionals.
Heather Doshay, SignalFire’s people and talent partner, echoed the importance of adaptability as an essential area of focus for recent graduates. In this dynamic job market, adaptability is key. She encouraged them to learn new AI tools in order to remain relevant and employable in their fields.
“AI won’t take your job if you’re the one who’s best at using it.” – Heather Doshay, SignalFire’s people and talent partner.
The impacts of these shifts go far beyond just the total number of hires. Gabe Stengel, founder of AI financial analyst startup Rogo, illustrated the power of AI to focus company efforts and resources on the most impactful processes. He noted, “We can put together the materials, diligence the company, look through their financials,” underscoring how AI is becoming integrated into the hiring and operational frameworks of tech businesses.
🎉 SignalFire has just raised our … $1 billion ! 👏 This milestone is achieved at a time when limited partners are increasingly adopting data driven investing strategies. The report’s insights may serve as a wake-up call for recent graduates navigating a challenging job market dominated by technological advancements and shifting employer priorities.
