Will IT hiring ever return to its peak?

UPFLINX

This question was originally asked by one of our webinar attendees and has been shared here by the UPFLINX team to invite broader insights from the community.

Currently, many software houses, especially in the automotive space, are facing a slowdown. Budgets are tighter, projects are paused, and roles are drying up.

Do you think the boom times in IT hiring, when there were endless offers and sky-high rates, will return? Or has the market fundamentally shifted? Curious how others see the next 1–2 years playing out.

Karolina

FlorianRocktaeschel

I can’t speak in depth about the automotive sector specifically, but being based in Germany, I’m certainly following the headlines. That sector was once a very secure place for software engineers, good pay, steady roles, but that’s changing.

What I’ve observed is that it’s not the need for engineers that’s disappearing, it’s the shape of those roles. Traditional software development is increasingly automated. Large tech firms, including Meta, have already stated their intent to eliminate many middle-level engineering roles in favor of AI-supported solutions. We're seeing the rise of 'AI-first' development.

As recruiters and HR professionals, we need to adapt and so do our candidates. The future won’t eliminate software roles altogether, but it will demand that engineers evolve. Those who understand AI-assisted frameworks, who know how to build with and around large language models, will become highly valuable. That’s where we’re seeing new, high-paying roles emerge.

So, while the boom times for generic dev roles might not return, there’s definitely a boom on the horizon for the next wave of tech talent. The window is now open for software engineers to reskill and position themselves at the forefront of that shift.

LauraVoinea

Having worked in HR for over 20 years, I’ve seen several boom and bust cycles and IT is not immune. Right now, we’re in a realignment phase, and it’s not just about rates or headcount. According to recent projections, nearly 40% of current job skills may become outdated within the next 24 months. That creates a lot of uncertainty but also a lot of opportunity.

We’re already seeing the rise of 'green collar' jobs and new forms of technical work that don’t always fall under traditional software engineering. Engineering itself isn’t going away but its application is changing fast. And with it, hiring priorities are shifting.

Will high salaries return? Yes, but not for the same skills that earned them five years ago. We’re entering a time that demands constant learning and flexibility. The companies and professionals who embrace that mindset will find their footing again and fast.