Where Have All the Entry-Level Jobs Gone?

Where Have All the Entry-Level Jobs Gone?

This year’s graduates are stepping into a job market unlike any that has come before. They leave university with high hopes, fresh ideas, and formidable debts, only to find that the traditional entry points into professional life are quietly vanishing. In many sectors, especially the once-booming tech industry, the bottom rungs of the career ladder are being removed altogether. It’s not just economic cycles or post-pandemic adjustments at play. Structural changes driven by automation, artificial intelligence, and corporate cost-cutting are reshaping how and where young talent enters the workforce. In short, the era of the entry-level job is fading fast and with it, the assumption that a university degree automatically opens doors [1][2].

In recent months, major tech firms like Google, Microsoft, Amazon, and Meta have laid off tens of thousands of employees. While these headlines often focus on mid-career or senior staff, the ripple effects have hit entry-level hiring just as hard, if not harder. A recent Economist piece notes that “junior roles are being hollowed out,” particularly in areas like software development and marketing [1]. At the same time, Forbes warns that AI may “erase traditional career ladders,” replacing them with fragmented, freelance-heavy alternatives [2]. The New York Federal Reserve reports that unemployment among 22–27‑year‑olds stands at 5.8%, compared to just 2.7% for older cohorts, which is a significant gap not seen since the pandemic era [3].

Husayn Kassai, CEO of Quench AI, is blunt about the trend: “These aren’t just numbers—AI is automating rote tasks in programming, legal work, and customer service. That risks stalling career ladders” [4]. Dario Amodei, CEO of Anthropic, takes it further, warning: “I don’t think this is on people’s radar: AI could wipe out half of all entry-level jobs in the next five years” [5]. Andy Jassy, Amazon’s CEO, has also acknowledged that “AI will eliminate roles, particularly at the lower end of the skills spectrum,” though he maintains it will also create new ones [6].

So what does this mean for universities and their students? First, it demands a fundamental rethink of curriculum design. Most university courses are still built around deep subject expertise and theoretical learning. But in a world where entry-level pathways are blocked, that’s no longer enough. As Reid Hoffman, co-founder of LinkedIn, puts it: “AI will reshape jobs, not erase them. The key is adaptation” [7]. Universities need to produce adaptable graduates, those with transferable skills, AI fluency, and real-world experience.

That starts with embedding AI literacy and digital agility into every degree programme. Students of history, biology, and law alike should leave with a working knowledge of the technologies changing their industries. This means teaching with AI—not just about it. Second, universities must strengthen their links with industry. Work placements, live business problems, startup incubators, and short-term consultancy projects should be a core part of every student’s learning experience. If formal internships are declining, simulated or collaborative real-world projects must take their place.

Modularity and flexibility are also essential. In a future defined by career change and reskilling, students should be able to build degrees like toolkits: stackable, updatable, and personalised. This is not about dumbing down the university experience, it’s about futureproofing it.

For graduates, the message is equally clear. Relying on a polished CV and good grades no longer cuts it. What matters now is proof of skills, initiative, and adaptability. That means building a portfolio, creating content, freelancing, contributing to open-source projects, or starting something small on the side. If no one will give you experience, create your own.

Graduates should also look outside the tech bubble. Sectors like healthcare, renewable energy, logistics, education, and the skilled trades all have strong demand and are less vulnerable to automation [8]. As Matthew Martin of Oxford Economics puts it, “The industries that grow may not be the ones universities have traditionally focused on” [9]. He warns of a mismatch between the supply of graduates in marketing, management, and tech and the demand for hands-on operational roles in other sectors.

Crucially, young professionals must learn to collaborate with AI. Those who treat it as a threat will be left behind; those who treat it as a partner will flourish. As Kassai puts it: “The graduates who will succeed are the ones who use AI to enhance and not replace their work” [4].

There is some good news. A growing number of employers from IBM to Unilever to the UK Civil Service are embracing skills-first hiring. Rather than prioritising degrees or previous roles, they assess candidates through task-based challenges, aptitude tests, or job simulations. For those without traditional experience but with drive and capability, this opens a door.

Universities must prepare students to walk through it. That means better career services, real-time labour market tracking, and stronger alumni mentorship. The transition from education to employment is no longer automatic—it needs to be engineered.

The decline of the entry-level job is not the end of graduate employability. But it is the end of graduate entitlement. Success will come not to those who expect to be hired, but to those who are ready to prove why they should be.

References

1. The Economist. (2024). Where did all the entry-level jobs go? [Online] Available at: economist.com [Accessed June 2025].
2. Forbes. (2024). AI May Be Erasing Entry-Level Jobs. Here’s What To Do. [Online] Available at: forbes.com [Accessed June 2025].
3. New York Federal Reserve. (2025). Labour Market Conditions for Young Graduates. [Online] Available at: newyorkfed.org [Accessed June 2025].
4. Kassai, H. (2025). Interview with Business Insider. “Founders on AI and Jobs”. [Online] Available at: businessinsider.com [Accessed June 2025].
5. Amodei, D. (2025). Quoted in IT Pro. “AI could wipe out half of entry-level jobs in five years”. [Online] Available at: itpro.com [Accessed June 2025].
6. Jassy, A. (2025). Amazon shareholder meeting, quoted in Axios. “AI is reshaping our workforce”. [Online] Available at: axios.com [Accessed June 2025].
7. Hoffman, R. (2024). AI and the Workforce: What’s Next? Reid Hoffman Podcast. [Online] Available at: linkedin.com/pulse [Accessed June 2025].
8. World Economic Forum. (2025). Future of Jobs Report. [Online] Available at: weforum.org [Accessed June 2025].
9. Martin, M. (2025). Oxford Economics. Quoted in Bloomberg Businessweek, “Mismatch in Graduate Supply”. [Online] Available at: bloomberg.com [Accessed June 2025].