The Impact of AI on Entry-Level Job Markets
The recent controversy surrounding a tech company’s advertisement in the London underground, which encouraged employers to “stop hiring humans” and instead use AI employees, has sparked significant public outrage. This marketing stunt resonated deeply with graduates who are struggling to find their first job. The job market for new graduates is more competitive than ever, making it increasingly difficult for them to secure employment.
Sally Wynter, a young London entrepreneur and TikTok content creator focused on helping people find their first jobs, highlights the challenges graduates face. She notes that junior roles are shrinking, and companies are actively hiring less junior talent. Many graduates from previous years are still searching for their first role, increasing competition. Wynter receives daily messages from university leavers who are struggling with their job hunt. She explains that they have been mislead by the promise that going to university and working hard would lead to job offers. However, the reality is that it can take hundreds of applications before landing a job.
Job hunting has become a full-time job itself, with hundreds of applicants vying for each role. Wynter emphasizes that the current job market is hyper-competitive, making it impossible for candidates to simply apply once and get a job like previous generations did. The situation is becoming reminiscent of the Hunger Games, with vacancies for entry-level roles decreasing significantly since the launch of ChatGPT in November 2022. According to Adzuna, there has been a 32% drop in such vacancies. Additionally, Indeed reports that graduates are facing the toughest job market since 2018, with a 33% decrease in graduate roles over the past year.
Even AI creators are concerned about the impact of their products on entry-level jobs. In May, Anthropic CEO Dario Amodei warned that AI products like Claude could eliminate half of all entry-level office jobs within five years. While these narratives about AI’s power should be taken with a grain of salt, reducing headcount is often part of the pitch for selling AI products to businesses. Companies are laying off staff at all levels, and factors like April’s National Insurance and wage hikes have led to headcount reductions. Businesses seeking cheaper labor are embracing AI but also offshoring roles to countries with lower salaries. Together, these trends paint a bleak picture for young people starting their careers.
Gary O’Sullivan, managing partner at consulting firm Sia, points out that it is not the graduates’ fault that universities have failed them. He argues that many courses do not adequately develop students’ AI skills. As AI transforms industries from marketing and law to healthcare and finance, there is a growing gap between what graduates are taught and what employers expect. A 2025 Higher Education Policy Institute study found that only 36% of undergraduates receive support to develop essential AI skills. Without embedding practical AI competencies across disciplines, graduates risk entering the workforce theoretically literate but practically unprepared.
Recruitment agency BrighterBox, which specializes in placing graduates at start-ups, has observed AI’s impact on the hiring process. Founder Charlie Johnson explains that some product-led or tech start-ups, especially in their early stages, are using AI to run leaner teams, resulting in fewer hires overall. Entry-level jobs often involve drudge work that AI seeks to replace. Additionally, one of the big promises of AI is increased productivity, leading companies to keep headcount low.
Marc Munier, CEO at DitchCarbon, an AI-powered emissions intelligence company, acknowledges that AI has allowed his team to be more productive, enabling them to hire fewer people. However, he adds that they can hire less experienced individuals at lower salaries who produce the same output as more senior employees. Glen Calvert, co-founder and CEO at Kaizan, an AI client service platform, explains that AI has reduced the need for new hires because existing teams can do more with AI tools. He emphasizes that the expectation now is for junior hires to come in with AI fluency and curiosity, rather than waiting to be trained on it.
Despite concerns about university students using ChatGPT for assignments, this self-taught AI proficiency could benefit them in securing their first job. Wynter believes younger jobseekers can leverage their familiarity with AI. She recently launched Hunch, an AI-powered tool for graduate job seekers to find open roles and coach them through applications.
Demis Bril, a senior director at workspace experts Instant Offices, suggests that businesses should ensure they hire graduates and train them in AI-specific pathways. He argues that companies empowering graduates to use AI responsibly and creatively will attract top talent and shape the future of work. This approach makes more sense than eliminating entry-level jobs entirely. It is a false economy to save money on salaries and training in the short term while neglecting the mid- and senior-level employees of the future.
Mohshin Patel, co-founder of investment platform Cur8 Capital, states that AI helps replace the grunt work but does not replace the smartest graduates. This shift raises the bar, with higher expectations for polish and precision upfront. Good luck, class of 2025.