For college seniors eagerly anticipating that first step onto the career ladder, reality is hitting like a brick wall. The tech jobs they studied for? Drying up. Entry-level finance and consulting gigs? Not what they used to be. Even internships are getting scarce. Blame a shaky economy, cautious employers, and a new coworker who doesn’t need coffee breaks: generative AI.
Openings for junior software engineers have dropped significantly, with large tech firms proudly touting AI’s ability to make human workers “more efficient” — a phrase that sounds suspiciously like “more replaceable.” Some companies have even flirted with slashing starting salaries, convinced that AI can shoulder a chunk of the workload previously reserved for fresh recruits.
And it’s not just the tech crowd feeling the pinch. Across sectors, businesses are pulling back on hiring or slowing down their pipelines for new talent. With layoffs looming and budgets tightening, many employers are hesitant to bring in new hires who still need training wheels.
According to Handshake, a career platform for students, college seniors are catching on. Nearly two-thirds of those familiar with AI tools worry these technologies will hurt their job prospects — a notable jump from the previous year. Students majoring in computer science, once confident about job security, are now reporting record levels of pessimism. They’re flooding the job market with applications — 21% more than last year — while the number of job postings falls in the opposite direction.
Internships, once a golden foot in the door, are no exception. Listings have dropped below pre-pandemic levels, according to data from Indeed.
The problem isn’t just the shrinking number of jobs — it’s that AI is nibbling away at what used to be entry-level work. Tasks like document prep, data review, and routine marketing analysis are increasingly getting outsourced to algorithms. This shift, experts say, could lead to a skills gap where new workers enter the workforce with diplomas but little hands-on experience. And since college curriculums rarely cover what it’s actually like to navigate office life, these gaps could widen into chasms.
Surveys show that younger job seekers are increasingly questioning the ROI of their degrees. Nearly half of Gen Z now wonders whether college was worth the price tag. The numbers don’t help: College grads under 27 are facing an unemployment rate more than double the average for degree-holders, and not much better than their peers without degrees.
Tech, once the gold rush destination for fresh grads, is especially turbulent. After massive pandemic-era hiring sprees, many companies pulled a hard U-turn in 2023, laying off tens of thousands. Job listings in tech have since plummeted. While companies say they’re still hiring, they’re shifting focus to seasoned professionals — even as they hand more entry-level tasks over to AI.
At the same time, many HR departments aren’t hiding their skepticism about new grads. A chunk of hiring managers across industries say they’d rather leave a role unfilled — or let a machine handle it — than take a chance on someone fresh out of college. Part of the issue is that today’s grads often didn’t get the social learning that used to come with early jobs or in-person college life. Many studied and interned remotely, missing the office osmosis that builds soft skills and confidence.
Still, not everyone’s writing Gen Z off. Some hiring experts argue that companies will need to invest in entry-level talent if they want to build strong teams in the long run. After all, midlevel and senior pros don’t grow on trees — and the only way to make them is to start with the rookies.
Forward-thinking firms are already adapting. They’re reimagining entry-level roles to include more mentorship, or seeking out candidates who show potential rather than perfect resumes. Meanwhile, savvy students are taking matters into their own hands, using AI as a tool rather than an obstacle. From crafting standout applications to cold-messaging recruiters, young job seekers are finding ways to stay in the game — even if they have to bend the rules.
Some are even skipping the application process entirely. One creative student recently made a viral video pitching herself for a job that didn’t exist — and it worked. That kind of initiative might become the norm in a world where traditional hiring is broken, and AI is everywhere.
Because as helpful as generative AI might be, it can’t simulate grit, curiosity, or the willingness to learn. And while machines may be able to write code or sort data, they still can’t make up for what real-world experience teaches: how to navigate a meeting, pitch an idea, or recover from a faceplant on the job.
