Like most developers these days, I’m mindful that the software industry is in the middle of the biggest churn since the 2008 financial crisis. There has never been a worse time to start a career in technology. Jobs are hard to come by, and entry level positions are impossible to land for new devs.
The statistics don’t lie. This excellent article breaks it down succinctly;
If you’re searching for no-experience IT jobs, you’re not alone. The market has shifted since 2025. The 2025 IDC Employee Experience Survey shows that 66% of enterprises are reducing entry-level hiring as they deploy AI, and 91% report roles being changed or partially automated. At the same time, Deloitte’s 2025 Human Capital Trends report highlights how organizations are struggling to balance speed, productivity, and talent readiness—pressure that lands first on early-career candidates.
Developers, especially ones who work for US Federal Government contractors, are now facing yet another setback. Jobs that do not include company sponsored health insurance, or benefits of any kind.
I will let that sink in a minute. To summarize: If you are planning to work for the Fed this year, you may have to pay for your own health insurance.
When I first encountered this trend on job boards about 6 months ago, I was really surprised and only halfway convinced that this practice was even legal. I learned that it is.
There is a loophole in the semi-popular Affordable Care Act, (Also called Obama Care) that enables employers who have under 50 people on their payroll to not be required to provide health insurance to their employees. Federal contracting companies who hire software developers to work on Federal projects are more frequently using small, agile and well-connected tech labor providers to staff their projects. This trend seems to be happening more and more.
To add to the frustrating trend of “State Segregation“, that is to say, companies advertising remote tech work but restricting the job offering to applicants residing in certain US States to avoid heavy tax and labor costs imposed by many, now the profit margins just got smaller.
To break it down by the numbers. Ani’ya, who is a software developer, takes a job working for the US Government through a contractor. The contractor pays Ani’ya $45.00 USD per hour for one year. At first this sounds like heaven but without employer sponsored health benefits, she is going to have to budget this out. Federal software developer positions can pay anywhere between $45.00 to $80.00 per hour, depending on the project and your experience.
For a woman paying for her own health insurance out-of-pocket, 2025 monthly premiums generally range from $380 for Bronze plans to over $540+ for Platinum plans, with an average of roughly $450-$500 per month for an unsubsidized marketplace plan. Costs vary significantly by age, location, and plan, with older individuals potentially paying much more.
Ani’ya’s gross earnings will take a hit. She chose the Platinum Plan, so now her weekly take-in goes from $1800.00 to $1260.00. Since these are gross earnings calculated before taxes, we should probably remove about 34% of that figure to calculate her final earnings as a resident of New York State. A net income of $831.60 per week. About the same as a retail manager in the US.
In my opinion, the situation is not optimal for any developer, and I believe that it’s driven by the current economic and political climate in the US, but also, the incredible, inevitable impact of the AI boom is certainly a prohibitive factor for College Grads seeking entry level tech positions.
Federal AI initiatives in software development are being led by large companies that specialize in contracting to the Fed like ICF, who are set to improve their ability to deliver on President Trump’s big AI plans, and I agree this is of vital importance. These industry leaders will not however fully escape the need for developers for software projects, it only changes the context of how developers will work, and with what tools. Many of these large companies use small and agile employment subcontractors like this one to staff software development projects.
Here is an example of this kind of offer to work for a Federal contractor as a Drupal Developer I received recently.
As the battle for ACA Subsidies rages on, leaving American developers feeling jittery about their future bottom line, it’s understandable that the quality of the software they create is going to be impacted. My position working in the USDA was eliminated last Summer by DOGE cuts. In this bleak hiring climate, I’m thinking of starting a cooking channel on YouTube to make ends meet this winter. Seriously.
In conclusion, I have in my long career seen some vicious downturns. I encourage all the younger devs out there to not give up. Rack up certs and skills, and completely internalize new AI tools and workflows. Contribute to open source projects to sharpen your skills, and cultivate a side job to pay the bills. It’s going to be quite the ride…
Lyrics — Look Sharp by Joe Jackson
Big shot, tell you what
Tell me what goes on round here
Go on and get me in the corner
Smoke my cigarettes and drink my beer
Tell me that this world is no place for the weak
Then you can look me in the eye
And tell me if you see a trace of fear
You gotta look sharp
You gotta look sharp
And you gotta have no illusions
Just keep going your way looking over your shoulder
Okay, what you say
Tell me what they’re wearing this year
Go on and laugh at me cause you don’t see
That I got something going right here
Say I’m just a dreamer
Say I’m just a kid
Well ace, shut your face
Maybe you will see or hear
You gotta look sharp
You gotta look sharp
And you gotta have no illusions
Just keep going your way looking over your shoulder
Big shot, thanks a lot
Gotta go it’s getting late
I got a date with my tailor now
Thanks for putting me so straight
Tell me how they rob me blind on every street
(La-la-la, la-la-la-la-la-la-la)
But check your watch and wallet now
Before I go and your too late
(Uh, huh-huh)
You gotta look sharp
You gotta look sharp
And you gotta have no illusions
Just keep going your way looking over your shoulder
Yeah