AI threatens entry-level job opportunities for recent graduates

In the United States, the increase in reliance on artificial intelligence has significantly affected the job market for recent college graduates. As companies across various sectors such as information, finance, insurance, and technical services embrace AI, they are increasingly choosing to reduce entry-level hiring. This shift has been particularly noticeable for the class of 2023 and beyond, as data reveals a decline in the share of bachelor’s degree holders who secure jobs within a year of graduation. Some reports indicate a staggering 50 percent drop in entry-level hires among the 15 largest tech firms since 2019. In 2024, only seven percent of new hires were recent graduates, down from 11 percent in 2022. The trend shows that industries are prioritizing seasoned professionals over inexperienced candidates, reflecting a growing expectation for new employees to possess critical thinking skills and the ability to work alongside AI technology. No longer can new hires simply rely on performing repetitive tasks; companies are restructuring how they train their staff, emphasizing the need for hands-on experience and mentorship. Firms like Carlyle are adjusting their training programs to focus on teaching junior employees AI best practices instead of traditional functions that entry-level workers were previously assigned. Internship opportunities are also diminishing as companies turn to automated solutions, which could lead to a long-term talent pipeline problem. With less hands-on experience, the essential learning and growth that often accompany entry-level roles may be compromised. Chicago-based Hirewell has noted that marketing clients are increasingly opting for AI solutions instead of hiring new graduates for entry-level positions, highlighting the urgent need for the workforce to adapt to this new environment. Reports from platforms like Handshake show a 15 percent drop in entry-level job postings this year, while applications per job have surged by 30 percent. The implications of this shift are vast, as businesses risk failing to cultivate the next generation of leaders if they do not invest in onboarding and mentoring programs. As entry-level positions vanish and companies depend more heavily on AI, the challenges faced by new graduates will only grow steeper, possibly resulting in a generation unprepared to fill more advanced roles in the future. The adaptation process for both employers and job seekers is critical, as AI becomes an integral part of the workforce landscape.