AI is shrinking and reshaping entry-level jobs for new graduates

In short: Companies are using AI to automate many beginner tasks, which is reducing and changing entry-level hiring and making it harder for new graduates to get started.

What's going on

Many employers are redesigning early career jobs because AI can now do a lot of the work that used to be given to junior staff. This includes things like cleaning up data, writing summaries, basic testing and quality checks, simple bookkeeping, routine customer support, and some content work. Think of it like a new office tool that can handle the first draft, so fewer people are hired just to do the first draft.

Reporting and analysis suggest the first step on the career ladder is getting smaller. Fortune reported that entry-level corporate jobs and internship offers are down, and that companies expect new hires to arrive with more job ready skills instead of being trained from scratch. In tech, SignalFire data cited by Fortune said hiring of new graduates at 15 large companies has fallen by more than 50% since 2019.

The shift is also showing up in job cut announcements. Fortune reported that in the first seven months of 2025, US employers cited AI as a reason for more than 10,000 job cuts, especially in back office and junior knowledge work roles.

Graduates are reacting strongly. A UK survey (Prospects at Jisc) found 11% of graduates have already changed their career plans due to AI and automation, and 14% feel pessimistic about their prospects. Many also worry about fields like coding, design, legal work, film, and art.

What to watch

Researchers at the OECD say the most common pattern is not whole jobs disappearing, but jobs changing as tasks shift to machines. The big question is whether employers, schools, and governments rebuild training paths, like apprenticeships and structured early career programs, so graduates can still gain experience even when routine tasks are automated.

Source: NYTimes