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AI may already be shrinking entry-level jobs in tech, new research suggests | TechCrunch

May 27, 2025 - techcrunch.com
The article discusses the impact of AI on hiring trends, highlighting a shift in employment patterns as companies increasingly adopt AI technologies. A survey by the World Economic Forum indicates that 40% of employers plan to reduce staff where AI can automate tasks. SignalFire, a data-driven VC firm, observed a decline in hiring recent college graduates by tech companies in 2024 compared to 2023, with big tech reducing new grad hires by 25% and startups by 11%. This trend is attributed to AI's ability to automate routine, entry-level tasks, potentially rendering some jobs obsolete. Despite this, the demand for experienced professionals is rising, with big tech increasing hiring by 27% for those with two to five years of experience.

The article also notes the paradox faced by recent graduates who struggle to gain experience due to reduced entry-level opportunities. Heather Doshay from SignalFire advises new grads to master AI tools to remain competitive, suggesting that proficiency in AI could safeguard their jobs. While AI poses a threat to low-skilled jobs, the need for skilled professionals who can leverage AI tools is growing. The article concludes with a brief mention of Marina Temkin, the author, who has a background in venture capital reporting and financial analysis.

Key takeaways:

  • 40% of employers plan to reduce staff where AI can automate tasks, according to a World Economic Forum survey.
  • SignalFire observed a 25% decrease in hiring of new graduates by big tech companies in 2024 compared to 2023, with startups reducing graduate recruitment by 11%.
  • AI is contributing to the decline in entry-level job opportunities as it can automate routine tasks, making some jobs for new graduates potentially obsolete.
  • Despite the decline in entry-level hiring, tech companies are increasing recruitment of experienced professionals, with big tech companies hiring 27% more professionals with two to five years of experience.
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