Skip to content
Tech News
← Back to articles

It’s time to address the looming crisis in entry-level work.

read original get Entry-Level Laptop Backpack → more articles
Why This Matters

This article highlights the emerging crisis in entry-level employment driven by the integration of AI, which threatens to limit opportunities for early-career workers and disrupt traditional pathways into the workforce. Addressing this challenge is crucial for the tech industry, educational systems, and policymakers to ensure sustainable employment growth and workforce development in an AI-augmented economy.

Key Takeaways

More experienced workers in those same occupations did not suffer the same decline. Employment is not also declining in the entry-level jobs with low AI exposure. The concern is specific to early-career jobs that are exposed to AI.

That is not a minor signal. It suggests that firms may be using AI to substitute for the junior tasks through which people traditionally gain their first foothold—at least for those in jobs where generative AI is used extensively, like software developers, customer service representatives, computer programmers, and information systems managers.

The time is now to make changes in the way we train, prepare, and support young people who are about to enter the workforce. Educational institutions need to reorient for the era of an AI-augmented workforce. Governments must incentivize businesses to hire and train early-career workers. Businesses, in turn, need to recognize the importance of developing a long-term workforce experienced in AI—a process that begins with entry-level workers. And students themselves should take on the responsibility of not only becoming AI fluent but learning how to apply that knowledge in various fields.

In short, we must change the way we have traditionally thought of entry-level work.

This is especially true because the broader labor market for recent graduates is also softening. The Federal Reserve Bank of New York reported that in the fourth quarter of 2025, the unemployment rate for recent college graduates rose to 5.6%, while the underemployment rate (the share of graduates working in jobs that typically do not require a college degree) reached 42.5%, its highest level since the covid pandemic. No single statistic can prove that AI is the sole cause of that deterioration. Hiring in general is way down post-pandemic, and young people are particularly vulnerable to the slowdown. But it would be a mistake to ignore the possibility that AI is accelerating an already difficult transition from school to work.

Behind these statistics is a great deal of personal distress. Recent graduates today often submit hundreds of applications before they receive a single offer, and surveys consistently find elevated rates of anxiety, financial precarity, and burnout among young workers in extended job searches. If AI quietly closes the door on typical early jobs, people will pay the price in delayed independence, postponed family formation, and the sense that their first serious professional efforts have been refused.

It also matters because entry-level jobs are part of the economy's training system. Junior analysts learn which numbers can be trusted. Young software developers learn how production systems fail. New marketers learn how customers behave outside the neat language of dashboards. Early-career legal and financial staff learn how rules, judgment, deadlines, and human relationships actually interact. If AI absorbs more of the drafting, triage, coding, summarizing, and administrative preparation that once helped train entry-level workers, firms may become more efficient in the short run while society becomes less capable in the longer run.

The right way to improve the skills of young workers is not to tell them, “Learn to code.” That advice, which shaped more than a decade of federal initiatives and university expansion, rested on the premise that coding was a stable, scalable skill almost anyone could learn and parlay into a middle-class job. The premise no longer holds. The layer of work AI handles well—translating a specification into routine code, reproducing standard patterns, debugging predictable errors—is precisely the layer that “learn to code” programs were built around.