Tech workers in Silicon Valley are feeling uneasy about their jobs as a new AI coding tool called Claude Code has made it easier for developers to build projects autonomously. The tool’s power and capabilities have led some to fear being replaced by machines, sparking concerns about the “permanent underclass” of workers who will lose their jobs due to automation.
The anxiety is palpable among engineers, who feel that AI is taking over tasks they used to do with ease. Many are worried that their skills will become obsolete as coding agents show signs of having “ideas” and proposing architectures without human guidance. The industry’s top experts have differing opinions on the impact of AI on jobs, but most agree that it’s a matter of when, not if.
The latest update to Claude Code has further exacerbated the concerns. Anthropic CEO Dario Amodei warned last year that AI could wipe out half of all entry-level white-collar jobs in one to five years. Meanwhile, Verizon CEO Dan Schulman predicts overall unemployment could hit 20%, or even 30%.
Despite these warnings, some experts argue that when the barrier to building software drops, more software gets built – creating new job opportunities. However, many engineers are struggling to adapt to this new reality and are grasping for historical precedents. Some point to the success of compilers in the 1950s, while others fear a darker future like “The Hunger Games.”
Enrico Moretti, a labor economist at UC Berkeley, offers hope that San Francisco may be an exception to this trend. He believes the city’s growing AI sector could offset and eventually surpass weakening demand for traditional software engineers.
However, for many engineers, the uncertainty is crippling. They feel they’re getting the raw end of a bargain they thought was secure. The once-stable tech industry job market has become precarious, with some even joking about moving to Yosemite and becoming park rangers if their jobs disappear due to AI.
Source: https://sfstandard.com/2026/02/19/ai-writes-code-now-s-left-software-engineers