AI Reshapes Entry-Level Job Market for New Graduates

Recent research and employment data indicate that artificial intelligence is affecting the availability of entry-level positions, particularly in technology and AI-exposed fields. These changes are impacting new graduates and early-career workers in several sectors.

Studies from Stanford and other institutions reported notable declines in employment for early-career software developers and entry-level workers in roles exposed to AI. For example, employment for software developers aged 22 to 25 dropped by nearly 20% from its late-2022 peak, and entry-level hiring in AI-exposed jobs declined by about 13% compared to less-affected roles such as nursing.

Data from Revelio Labs showed that the number of entry-level job postings in the United States decreased by approximately 35% over the past two years. SignalFire research found that large technology companies reduced hiring of new graduates by 25% in 2024 compared to the previous year, while startups reported an 11% decrease in graduate recruitment.

According to a Stanford-affiliated study, entry-level employment in fields such as accounting, development, and administrative assistance dropped by 13% over three years, while employment for more experienced workers in these areas remained stable or improved. Employers projected only a 1.6% increase in hiring for the Class of 2026 compared to the Class of 2025.

What the numbers show

• Entry-level job postings in the US declined by about 35% in two years
• Big Tech companies reduced new graduate hiring by 25% in 2024
• AI-exposed entry-level roles saw a 13% employment drop over three years
• Employers projected a 1.6% hiring increase for the Class of 2026

Surveys and interviews with students in computing and related fields have documented increased concern about the impact of AI on job prospects. A multi-institutional survey of 410 computing students found that those in higher education expressed more worry and skepticism about generative AI than high school students. Interviews with computer science students at the University of Toronto revealed job insecurity and anxiety about AI-driven displacement, especially in software engineering and web development, leading some to pursue upskilling and specialization.

Experimental research involving 1,700 recruiters in the United States and United Kingdom indicated that resumes listing AI skills were more likely to receive interview invitations, with probabilities increasing by 8 to 15 percentage points. These AI skills also helped offset disadvantages such as older age or lower formal education.

Institutional leaders and industry representatives have commented on the changing landscape. At the 2026 World Economic Forum, IMF Managing Director Kristalina Georgieva stated that AI is affecting the labor market, with entry-level roles often among the first to be impacted. LinkedIn’s chief economic opportunity officer stated that AI is increasingly threatening entry-level jobs that have traditionally served as starting points for young workers.

Industry reaction

The IMF’s managing director stated at the 2026 World Economic Forum that AI is having a strong effect on entry-level positions, which can reduce the training opportunities organizations provide to new workers.

LinkedIn’s chief economic opportunity officer stated that AI is increasingly impacting the availability of entry-level jobs for young workers entering the workforce.

Overall, research and employer data indicate that AI is influencing hiring patterns for new graduates, with entry-level opportunities declining in several sectors, particularly those most exposed to automation and AI technologies.

* This article is based on publicly available information at the time of writing.