What does the future hold for today’s graduates?

What does the future hold for today’s graduates?

We are increasingly concerned about the prospects of those graduating this year. The advent of artificial intelligence (AI) and digitisation has rendered many entry-level roles obsolete. This is not necessarily a bad thing for businesses, as it reduces costs and increases efficiency. In 2022, 92.1% of businesses reported that AI had produced measurable results, including an increase in sales of 67% due to the implementation of chatbots and 44% of businesses noted cost savings as an advantage of adopting AI (Source - Sybill Study, Intercom.)

Consider this example: the CEO of a company is looking to employ a new CFO. Traditionally, they would contact the Chief People Officer (CPO) or Director of HR, who would delegate the creation of the job description (JD) to an entry-level HR assistant or officer. The assistant would draft the JD by reviewing previous JDs on file and researching other examples online.

Once prepared, the document would likely be reviewed by a senior colleague before being sent to the CPO, who would make further revisions and forward it to the CEO for final sign off. This process could involve up to four individuals, with the JD being passed both down and up the chain of command for input. Today, however, the CEO might simply use AI tools like ChatGPT to generate the JD, make any necessary amendments, and send it to the CPO for additions regarding the companies hiring process and notes for recruiters. The CPO would then publish it online and disseminate the JD to recruiters, a two-step process that eliminates the need for any administrators.

While this efficiency benefits businesses in terms of cost and time, it raises concerns about how new graduates will learn their “craft.” In the previous process, the HR assistant would interact with several senior colleagues and conduct research, gaining valuable insights and skills along the way. Administrative roles like these have historically been essential for early-career professionals to familiarise themselves with their industry, build teamwork skills, and demonstrate their potential for more senior roles.

This issue is not limited to HR. In IT, AI can write code; in manufacturing, it troubleshoots and optimises processes; in public relations and marketing, AI drafts press releases and promotional content. Even paralegal work and entry-level accounting and finance roles are becoming increasingly automated.

If we eliminate entry-level careers, where will the next generation of graduates develop and demonstrate their skills to prepare them for the next step in their careers?

Although this question has no easy answer, there are steps students can take to prepare for the evolving job market. Firstly, get involved! Engage in university activities such as faculty committees, societies, sports teams, academic projects and university activism. These experiences help students develop interpersonal, organisational, and teamwork skills that can be showcased on CVs and job applications.

We must at this point acknowledge the financial challenges many students face today. Rose Stephenson, Hepi’s Director of Policy, has noted that the traditional model of higher education, where undergraduates study full-time away from home is increasingly unattainable without improvements to student maintenance support. Stephenson highlights that most students now work part-time, and the number of hours they work is rising. If this trend continues, full-time study may become unfeasible for many.

The cost-of-living crisis has shifted the balance between work and study. Before 2021, nearly two-thirds of students did not engage in paid work during term time. This year, 56% of students reported holding paid jobs, often working longer hours than in previous years. While balancing work and studies is challenging, it can also be beneficial. These experiences help students develop transferable skills, such as time management and customer service, that may enable them to bypass traditional administrative roles and progress more quickly in their careers.

We strongly recommend that students pursue paid employment during term time and/or vacation periods. Personally, my experience working in a restaurant during summers and my final year at university was invaluable. The customer service and sales skills I gained, as well as the interpersonal skills I developed while working with a team (including a hot-headed chef), were instrumental in securing employment after graduation.

After graduating, we advise students to find a full-time job immediately, even if it has nothing to do with their degree—ideally in a sector different from their previous part-time roles. For example, if you worked in hospitality during university, such as in a bar or restaurant, consider seeking a retail position. This not only provides financial stability, it gives you experience of other sectors and expands your knowledge of different industries, skill set and work experience while you search for your “dream job.”

While jobs for life are often lamented as a thing of the past, they are not entirely obsolete. At 18, Mary T. Barra got a job on the assembly line at General Motors, inspecting hoods and fenders. In 2014, Barra was named CEO of General Motors, and two years later, she became the chairman of the company. Similarly, Doug McMillon loaded trucks at a Walmart distribution centre as a teenager and is now the company’s CEO. Li Mingyuan began his career at Baidu, China’s largest search engine, as an intern in 2004 and became vice president by 2013 at the age of just 29. Starting at the bottom of an organization can still lead you to the top, as long as you actively engineer your career progression.

When it comes to securing graduate jobs, work experience “is King!” According to The Independent, research reveals that 58% of employers prioritise work experience as the most important qualification, while 48% rank personality as the second most important factor, degree discipline ranks third. Additionally, data from the U.S. Bureau of Labor Statistics indicates that only 33% of jobs in the United States require a college degree, emphasising the value of practical experience, relevant skills, and training over formal academic credentials.

A University of Hertfordshire study involving 500 employers found that nearly half prioritised “relevant work experience, a strong work ethic, and a degree in a relevant subject” when hiring graduates. In contrast, only one in four employers expressed interest in the class of degree, and even fewer cared about the reputation of the university attended. A commitment to hard work and perseverance often outweighs the importance of graduating with a first-class degree.

It’s also crucial to remember that your first job with a few notable exceptions mentioned above, will rarely be your job for life. Early roles are opportunities to gain skills and experience, and they may not always align with your expectations or long-term goals. Make the most of every opportunity, but don’t hesitate to move on if the job isn’t the right fit, just ensure you have another position lined up first.

Finally, start thinking about your future career progression early. I recently advised a colleague who had been in her job less than a year to consider where she wanted to be in the short and medium term. I encouraged her to reflect on how her current role could help her achieve those goals, what management experience she might need, and what qualifications and skills could enhance her prospects.

I would give the same advice to anyone embarking on their early career, even as AI disrupts the labour market. It’s never too early to plan your next steps and identify how your degree is preparing you for the workforce while filling any gaps with part-time work, voluntary work or any other workplace experience. For those already in work, consider how your current role, whether a stopgap or your dream job can prepare you for the future.

Plus it is not all bad news for this year’s graduates, the World Economic Forum's Future of Jobs Report highlights the dual impact of AI on the job market: by 2025, automation may displace 85 million jobs, but it is also expected to create 97 million new roles. This shift in the division of labour among humans, machines, and algorithms underscores the need for workforce transformation rather than workforce reduction. The next question is: will this year’s graduates be ready?