As AI slashes entry-level roles, Gen Z grads race to upskill and stand out

Gen Z college graduates are navigating one of the most challenging job markets in recent history as artificial intelligence reshapes industries and reduces demand for entry-level roles. With job postings for early-career candidates declining and employers expressing pessimism about hiring prospects, new graduates must adopt innovative strategies to stand out. The National Association of Colleges and Employers (NACE) reported that 51% of employers rated the 2025 job market for college seniors as "poor" or "fair," the highest share since 2020-21 according to a CNBC report. Meanwhile, data from Handshake-a platform for early-career talent-shows a 16% drop in job postings between August 2024 and 2025, while the average number of applications per role surged 26%.

The rise of AI has accelerated the displacement of traditional entry-level roles. Employers are increasingly automating tasks previously performed by junior workers, from data entry to customer service. Joseph Fuller, a Harvard Business School professor, noted that AI has "rendered moot certain types of skills that were once good currency in the labor market," narrowing career pathways and increasing credentialing requirements. Revelio Labs data underscores this trend, revealing a 35% decline in U.S. entry-level job postings since January 2023.

To compete, Gen Z graduates must embrace AI as a tool rather than a threat. Christine Cruzvergara, Handshake's chief education strategy officer, emphasized that employers seek candidates who can articulate how they use AI thoughtfully in their workflows. For example, students pursuing cyber roles are advised to obtain certifications like CompTIA's Security+, while those targeting sales positions should master CRM platforms like Salesforce according to experts. Tanya Moore, chief people officer at West Monroe, added that "targeted skills can help early-career candidates break through the noise," particularly when aligned with employer needs.

Networking has also evolved in the AI era. Cruzvergara urged graduates to connect with professionals in their desired fields to understand real-time AI adoption and identify gaps where they can add value according to experts. This approach not only builds relationships but also provides insights into how to tailor applications and interviews to AI-driven hiring processes.

Speed and personalization remain critical. With applicant tracking systems scanning resumes, candidates must tailor their materials to each role. Moore warned that delays in applying increase the risk of roles being filled by earlier applicants. AI tools can aid in this process, but Cruzvergara stressed that "AI can't replicate who you are," urging applicants to infuse their unique experiences into job applications.

The job market's challenges extend beyond individual strategies. Companies like C3.ai, an enterprise AI software provider, exemplify broader industry pressures. C3.ai's Q1 FY2026 revenue fell 19% year-over-year to $70.3 million, and its net loss widened to $117 million. The company has restructured sales operations and withdrawn full-year guidance, reflecting the volatility of the AI sector. Such instability may further limit entry-level opportunities as firms prioritize cost-cutting and operational efficiency according to analysts.

Despite these hurdles, experts advise graduates to maintain a growth mindset. Cruzvergara framed the job search as a journey to find a role that offers training and exposure, rather than a permanent position according to experts. Support networks are also crucial to combat self-doubt, she added, emphasizing the importance of honest feedback on strengths and areas for improvement according to experts.

As AI continues to redefine the workforce, Gen Z graduates must balance adaptability with resilience. By leveraging AI competencies, securing targeted skills, and personalizing their approaches, they can navigate the competitive landscape and position themselves for long-term career growth.