Is AI Stealing Entry-Level Tech Jobs? New Research Reveals Shocking Trends

The impact of AI on the job market has been a hot topic, with new research suggesting that entry-level tech jobs may already be shrinking due to automation. A recent survey by the World Economic Forum found that 40% of employers plan to reduce staff where AI can automate tasks.

SignalFire, a data-driven VC firm, analyzed hiring trends and discovered that tech companies, especially the top 15 Big Tech firms, hired 25% fewer recent college graduates in 2024 compared to 2023. Startups also reduced graduate recruitment by 11%. While the exact numbers weren't disclosed, it's clear that thousands of fewer grads were hired.

Why are entry-level jobs at risk? These roles often involve routine, low-risk tasks that generative AI excels at, such as coding, debugging, financial research, and software installation. Asher Bantock, SignalFire’s head of research, notes there's "convincing evidence" that AI is a significant factor in this trend.

The paradox for new grads: They can't get hired without experience, but they can't gain experience without being hired. Heather Doshay, SignalFire’s people and talent partner, advises new grads to master AI tools to stay competitive: "AI won’t take your job if you’re the one who’s best at using it."

Meanwhile, demand for experienced professionals is rising. Big Tech companies increased hiring by 27% for those with two to five years of experience, while startups hired 14% more in the same category.