Young Software Developers Face AI Job Pressure as California Eyes Layoff Notice Rules

AI coding tools are intensifying pressure on young software workers, turning what was once marketed as a reliable path to high-paying work into a more uncertain career bet.

The American Prospect reported that software engineer Zaul Moayedian was laid off after his team at Paystand began using AI tools, while labor advocates warn the issue is increasingly showing up not only as layoffs, but as reduced hiring for junior roles.

The concern is backed by emerging labor research. Stanford Digital Economy Lab researchers found employment declines concentrated among workers ages 22 to 25 in AI-exposed occupations, including software development, while older workers in similar fields fared better.

The policy question is now moving to states. California’s proposed SB 951 would require advance notice before AI-linked displacement affecting 25 or more workers or 25 percent of a workforce, whichever is less.

The stakes are larger than one layoff cycle: if companies stop hiring junior developers, they may weaken the pipeline that creates senior engineers.

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