A new report shows employers are cutting back on entry-level hiring, but expect things to improve eventually
AI is continuing to make life harder for entry-level workers, with a new study revealing that new grads are facing a radically changed job market.
According to research from St. Thomas University, nearly half (42%) of employers believe that AI may eliminate most entry-level white-collar roles in the next five years – although a similar number think these roles will recover after the initial AI boom.
The study noted that the application process is getting more disheartening for those entering the workforce. One-in-five graduates said they’d applied to more than 50 jobs before landing their first role, with just 21% of applications resulting in a real human interview.
Nearly three-quarters of job seekers (73%) believed AI resume filters prevented their applications from being seen – and they’re right, with almost half of employers using AI to screen resumes.
Meanwhile, 28% said AI helped schedule interviews or assess candidates through tests. Other applications include chatbots for communication, ranking candidates after recruiter reviews, and even analyzing video interviews.
Nearly eight-in-ten job seekers said they’ve run into ‘ghost jobs’ that appear outdated or fake, and 42% or employers admitted that this was the case.
Despite a challenging jobs market, researchers said there is room for “cautious optimism” ahead.
Nearly two-in-five hiring professionals said they expect to increase entry-level hiring in the year ahead. Over the past year, 38% said entry-level hiring stayed the same, and 29% reported growth.
More than half of companies (53%) said they hadn’t changed minimum experience requirements, and only 18% required AI-specific skills for most postings.
“Early-career tech workers are facing a challenging but not insurmountable path into the industry. Graduates are applying to numerous jobs, often encountering ghost listings, yet many still see value in their degrees and believe in the long-term potential of tech careers,” researchers said.
“On the employer side, cautious optimism about entry-level hiring suggests opportunities remain, even as AI-driven processes change recruitment tactics.
“These findings illustrate a complex but evolving hiring environment that future graduates must be prepared to navigate.”
The report is just the latest to highlight the difficulties facing new graduates in the age of AI.
Earlier this summer, for example, SignalFire’s 2025 State of Talent report found that tech companies were hiring significantly fewer college graduates than in the year before.
The unemployment rate for new college graduates had surged 30% since September 2022, researchers said.
Meanwhile, tech leaders confirmed the trend, with LinkedIn’s chief economic opportunity officer, Aneesh Raman, comparing the situation with the sharp decline in manufacturing jobs that took place in the US during the 1980s.
