AI's Impact on Employment: Entry-Level Jobs Disappearing

Entry-level tech workers are facing significant challenges as artificial intelligence reshapes the job landscape. According to a report from SignalFire, over the last three years, the number of fresh graduates hired by big tech companies globally has declined by more than 50%.

A student from a high-ranking engineering college in India noted that fewer than 25% of his 400 classmates have secured job offers, leading to a sense of panic on campus. AI is increasingly automating tasks that were once assigned to fresh graduates, such as debugging, testing, and routine software maintenance.

Consulting firm EY reported that Indian IT services companies have reduced entry-level roles by 20%-25% due to automation and AI. Job platforms like LinkedIn and Indeed observed a 35% decline in junior tech positions across major EU countries during 2024.

Vahid Haghzare, director at IT hiring firm Silicon Valley Associates Recruitment in Dubai, stated that the hiring landscape has drastically changed, noting that five years ago, there was a bidding war for coders and developers, while now, it has dropped dramatically, with almost no positions left for fresh graduates.

Haghzare described the current educational system as unsustainable, with students committing three to five years to learn computer science only to find few job opportunities. As many as 37% of managers indicated they would prefer to utilize AI over hiring a Gen Z employee, raising concerns about the future of employment and the urgent need for reskilling in a rapidly evolving job market.