AI Automation Cuts Entry-Level Tech Jobs by 50% Since 2019

The labor market for recent college graduates in the technology sector is undergoing a significant contraction, with job openings for new hires falling by more than half since 2019 [1]. This shift has left many graduates struggling to find entry-level positions that once served as the foundation for corporate careers. The decline is being accelerated by the rise of artificial intelligence, which is increasingly automating tasks traditionally performed by junior employees. As a result, companies are delaying or reducing early-career hiring, which could undermine long-term leadership pipelines [1].

Kenneth Kang, a computer science graduate from Portland, Oregon, spent over a year applying to more than 2,500 jobs and securing only 10 interviews. After more than 10 months of searching, he eventually returned to a job at Adidas, where he had previously interned [1]. Kang described the experience as “very devastating” and noted that one of his classmates had been unemployed for two years [1]. His experience highlights a growing trend: entry-level roles are becoming increasingly scarce, and employers are demanding skills and experience that were once taught on the job [1].

Artificial intelligence is playing a central role in this transformation. Tasks such as data cleaning, summarization, and basic quality assurance—often performed by entry-level workers—are now being automated, reducing the need for junior hires. According to a report from VC firm SignalFire, new graduate hiring at the 15 largest tech companies has dropped by more than 50% since 2019 [1]. Before the pandemic, new graduates made up 15% of hiring at large tech companies; now, that number has fallen to just 7% [1].

The reduction in entry-level opportunities is also affecting internships. The National Association of Colleges and Employers reported that in the 2023–24 academic year, only 62% of interns received full-time job offers, with the overall conversion rate falling below 51%—the lowest in over five years [1]. Hybrid interns faced even lower conversion rates than those working in person [1].

Experts warn that this trend could create long-term challenges for companies. While AI may offer short-term cost savings, it risks depleting the talent pipeline by limiting opportunities for new hires to develop leadership and managerial skills. Tristan L. Botelho, an associate professor at Yale School of Management, noted that companies that cut too deeply at the entry level may struggle to cultivate the future leaders they need [1].

Stella Pachidi, a Senior Lecturer in Technology and Work at King’s Business School, added that traditional pathways for developing expertise could disappear. “I think the traditional ways in which we have seen people developing expertise could easily vanish,” she said [1]. This could lead to a growing skills gap in the future, as fewer individuals gain the hands-on experience necessary to operate advanced AI systems [1].

In response to these challenges, some graduates are taking proactive steps to build their experience. Kang, for instance, founded a startup and formed a consulting group with other graduates to gain practical skills and build a resume [1]. Similarly, some universities are beginning to integrate AI tools into curricula, raising concerns among professors about the impact on students’ critical thinking and problem-solving abilities [1]. A study from MIT suggested that the use of large language models like ChatGPT could reduce neural engagement and hinder learning, especially among younger users [1].

Despite the uncertainty, some experts remain optimistic that the education system and job market will adapt. Eva Selenko, a professor of work psychology at Loughborough Business School, believes that graduates are highly motivated and capable of leveraging AI to enhance their skills. “I think we need to educate people to use AI tools to the best of their expertise,” she said [1].

Source: [1] AI is gutting the next generation of talent: In tech, job openings for new grads have already been halved (https://fortune.com/2025/08/15/ai-gutting-next-generation-of-talent/)