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Software job openings surge this year, defying AI fears

The US jobs report on Friday was surprisingly strong. That’s not the only part of the job market that’s doing better than expected.

Tech job openings have rebounded sharply in 2026, challenging the popular narrative that AI is wiping out engineering roles.

Data from TrueUp, a tech hiring analytics firm, shows more than 67,000 software engineering job openings, the highest level in over three years. Listings have roughly doubled since a trough in mid-2023.

The most striking number for me: So far this year, the number of open roles has jumped about 30%. TrueUp tracks jobs at tech companies (rather than all types of businesses that may need tech workers), so the impact of AI should be felt even more strongly in this data.

“A lot of the ‘AI is replacing engineers’ narrative isn’t grounded in job posting data — at least not so far,” Amit Taylor, founder of TrueUp, told me this week.

Check out this chart, which shows open software engineering roles globally. The chart starts in late 2022, when ChatGPT emerged and started the generative AI revolution. The line goes the opposite way you would expect, given all the hand-wringing over AI lately.


Open software engineering roles at tech companies

Open software engineering roles at tech companies 

TrueUp



The recovery follows a steep correction in 2022 and early 2023, when tech companies slashed hiring after over-expanding during the pandemic boom. Rising interest rates and a shift toward profitability forced companies to freeze hiring and cut staff. Now, hiring is rebounding as firms invest heavily in AI, which, ironically, requires large numbers of engineers.

TrueUp’s dataset tracks more than 260,000 open roles across 9,000 tech companies, focusing on startups and public tech firms rather than the broader economy. Within that universe, demand for software engineers remains strong, while AI-related roles are “exploding,” Taylor said.

So why does the situation feel so dire for some candidates, especially recent graduates? There are still entry-level tech jobs, but the pool of available talent is much bigger now.

“Way more people have pursued computer science,” TrueUp founder Amit Taylor told me this week. “The jobs haven’t disappeared, but competition for them is dramatically higher than it was even five years ago.”

How might the tech job market evolve, as AI weaves itself through the economy?

“Maybe AI compresses some roles entirely. Or maybe it makes great engineers so leveraged that companies fight even harder over them,” Taylor said. “Right now, the demand for top talent is strong, but maybe that continues for a while until things suddenly flip.”

Sign up for BI’s Tech Memo newsletter here. Reach out to me via email at abarr@businessinsider.com.




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ICE’s Minnesota surge is pushing small businesses to abandon business as usual

A second fatal shooting by federal officers in Minneapolis on Saturday has further inflamed tensions in the city.

Immigration agents, in full view of filming protesters, tackled a 37-year-old man to the ground before one shot him multiple times. City officials said in a press conference on Saturday that the man, who they believed to be a US citizen, had died at the scene.

The shooting occurred as thousands of protesters converged in downtown Minneapolis to rally against the Department of Homeland Security’s Operation Metro Surge, which has flooded Minnesota with ICE agents since December. Tensions have been high since officer Jonathan Ross fatally shot 37-year-old Renee Good on January 7.

Caught in the middle of all this are the city’s small businesses, which are typically grappling with a quiet January.

Dan Marshall, the owner of Mischief Toys in neighboring St. Paul, said he usually spends the month cleaning up after Christmas, painting the walls, and doing his taxes.

This year, though, “that’s not what we’re being called to do,” he said. Marshall co-owns the toy and game store with his wife and daughter.

Instead, he said the store has distributed about 4,000 3D printed whistles, which Minnesotans have been using as an alert and protest system against ICE. Marshall said that the store has also served as a space for the community to come in, relax, and process what they’ve been seeing.

“Retail feels totally different right now,” Marshall said. “It feels like a way of connecting with our community that we haven’t really felt before. It’s very raw.”

For small business owners in Minnesota, it’s been an eventful — and not necessarily lucrative — January, as they instead turn their attention to supporting their communities.

Many businesses are also opting into a possible income hit on January 23, when unions and faith leaders are calling for a suspension of work, school, and shopping to protest ICE’s actions. Local news site Bring Me The News compiled a growing list of over 200 local establishments’ social media posts about their plans to participate in the economic blackout day. Some have said they plan to donate that day’s revenue; others are shuttering completely or opening as a free community space.

DHS Assistant Secretary Tricia McLaughlin said in a January 20 press release, “Since President Trump took office, DHS has arrested over 10,000 criminal illegal aliens in Minnesota, and we are NOT slowing down. Our law enforcement officers are saving countless American lives.” ICE did not respond to a request for comment from Business Insider.

In a statement, White House spokesperson Abigail Jackson said that the Trump administration’s immigration operations “have resulted in countless dangerous criminal illegals being removed from the streets.”

“Making American communities safer will create an environment in which all businesses can thrive in the long term and their customers can feel safe,” Jackson said.

Catzen Coffee, a specialty coffee shop with an attached cat lounge, will not be doing business on Friday, but plans to open for those who need a space to hang out — free coffee and cat cuddles included.

Catzen owner Vanessa Beardsley said that the irony of being a business owner and opting out of business for a day never crossed her mind; not making revenue was never part of the calculus.

“We’ve got to do what we can do right now,” Beardsley said.

A topsy-turvy January

“January always sucks,” Matt Cole, the owner of Oh Yeah! Cookie Company, said. “As a business owner, especially in retail business, people spend a lot of money in December and November, and they usually don’t spend a lot of money in January. So January is always a month that’s hurting — and now it’s really hurting.”

National Retail Federation’s spending data shows an average drop in retail sales of 17.3% from December to January over the last five years. January through March has also typically seen the lowest average monthly employment for small businesses across the past few years. An analysis from consumer research firm Consumer Edge of credit and debit card data found that spending in the Minneapolis-St. Paul metro area by households earning under $100,000 has tracked lower than the national average over the four weeks ending January 10.

This year, Cole estimates he’s donated around $300 worth of cookies to groups distributing treats to kids who can’t go to school amid ICE’s presence. He said that if he does make any money right now, he’ll donate 10% of his sales. The full-time role he works in addition to his homemade baking business has been keeping him afloat.

Cole isn’t the only one pivoting from normal business.

JP Pritchett, the owner of adult store Smitten Kitten in Minneapolis, said that they usually devote January to ramping up for Valentine’s Day, which they described as the “Super Bowl” for adult stores.

“Typically in January, we’re ramping up inventory, getting the store stocked, just getting ready to do commerce,” Pritchett said. “But this year, I don’t care about that. Nobody cares about that.”

Instead, Pritchett said, “We stopped all regular business and created a free store inside Smitten Kitten where people could come get food or send a trusted friend or neighbor to come get food, toiletries, lots of diapers, formula, baby wipes — all the things that are really important to sustain life if you’re in hiding.”

Marshall, the owner of Mischief Toys, said that after promoting the store’s whistle distribution, he received a notice from ICE requesting verification of his workers’ employment eligibility. He said that shuttering on the 23rd sends a message “that our community is much more important than our bottom line,” which he believes is a positive.

“We’d like to sell toys,” Marshall said, adding that he’d prefer to spend January cleaning and painting “because it’s so damn cold here,” but with heightened tensions in the city, “we’re going to step up as much as we can.”




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