Graduates entering one of the world’s most dynamic and competitive job markets. Yet as artificial intelligence (AI) continues to transform entry level positions, they are facing challenges like never before. Experts warn that AI could eliminate up to half of all entry-level office jobs in the next five years, leading to a significant reduction in available roles. Consequently, graduates need to meet different standards and learn new skill sets to stay ahead of the competition.
Dario Amodei, head of one of the most successful AI research organizations in the world Anthropic, emphasizes the risk of massive job displacement. He says that a sea change is looming, especially for positions that have long been occupied by entry-level grads. As AI systems increasingly get more advanced, the need for human workers in these roles could evaporate.
The job market for these types of entry-level, technical office support roles has a troubling trajectory. A new report finds that the number of open positions has decreased by over 35 percent. This drop has taken place over the past 30 months. This rapid decline should sound alarm bells for our graduates as they seek their place in a workforce that is becoming more competitive and less predictable.
New Expectations in the Job Market
As companies adjust to the new generative AI landscape, the requirements for employment and hiring have changed. As David Bell explained, law firms and other organizations are increasingly asking for AI competence as a prerequisite from recent grads. He points out that those who don’t have an understanding of AI technology will be at a clear disadvantage in the hiring process.
Moreover, James Reed emphasizes that errors once considered red flags may no longer hold the same weight in an AI-driven environment. Given AI’s transformative impact on assisting in completing tasks to academic work, employers may see errors in a new light. Maybe the hiring decision will change.
“The skills required at being good at AI are not necessarily the academic skills you have acquired,” states Louise Ballard. This transition further highlights the urgency for universities to embed AI literacy into their curricula across the board. Chris Morrow advocates for embedding AI learning across all subjects to better prepare students for a job market increasingly influenced by technology.
A Shrinking Pool of Opportunities
The statistics around graduate vacancies tell an alarming story. Ed Steer provides a stark picture of the drop off in graduate vacancies. They have plummeted from 400 annually in 2021 down to an anticipated 75 this year. This decline has been driven by a focus from industry onto more seasoned applicants able to “hit the ground running and deliver for their customers on day one.”
As Auria Heanley from CompTIA further reinforces this trend, there’s been a 30% decrease in lower-level positions just this year. She thinks it’s AI’s impact, combined with larger economic pressures, that has caused this contraction. Consequently, new graduates are having a harder time ever getting hired.
For Sophie O’Brien, AI has kicked the door open on a years-long downturn in graduate recruitment that gradually built momentum over that time period. She cautions that the job landscape could look vastly different even a year from now. Our graduates need to be proactive in addressing these changes.
The Future of Graduate Employment
With the buzz around AI, companies are significantly increasing their investments in AI technologies. Consequently, they’re creating completely new job opportunities that require expertise in AI ethics and prompt engineering. Chris Morrow points out that this evolution offers opportunities for graduates who can navigate the complexities of the new landscape.
Louise Ballard focuses on an under—publicized problem in higher education. She points out that they aren’t being taught the basic AI literacy skills they need. “You people are not getting the training they need,” she asserts. Without proper training, graduates risk falling behind their peers who possess the necessary skills to thrive in an AI-centric environment.
James Reed reflects on the current state of affairs, stating, “This is the year of AI… lots of businesses are really doubling down on it, investing in it.” He believes that AI will fundamentally transform the job market moving forward, which adds further urgency for educational institutions to respond adequately.
“For a lot of professional, desk-based jobs where you are processing information on a laptop it’s entirely obvious that a huge number of those jobs over the next few years are going to be redundant,” – Sophie O’Brien
The nation’s workforce is already preparing for these historic changes. Our educational institutions and employers need to work together to better arm our graduates for the realities of tomorrow’s workforce needs.