AI’s Job Claim Challenged: New Graduates Struggle as Entry-Level Roles Disappear Worldwide

AI’s Job Claim Challenged: New Graduates Struggle as Entry-Level Roles Disappear Worldwide

August 7, 2025

John Colgrove, founder of Pure Storage, boldly claimed during a recent visit to Bengaluru, “Not a single job has been lost to AI.” Sounds comforting, right? But reality tells a spicier story, as TOI reports. In the US, entry-level job postings have plunged by over 11% since early 2021. India’s situation is even sharper, with big IT giants hiring fewer than 5,000 graduates quarterly now, down from a whopping 50,000 just two years ago. Meanwhile, young job seekers in the UK send hundreds of applications and hear mostly silence. Here’s the hot truth—while big companies look like they're holding steady in headcount, the pipeline feeding fresh blood is drying up fast. New grads are stuck outside, banging on doors that won’t open. What’s cooking behind this shift? The secret ingredient: AI doesn’t want just potential; it demands skills. Entry-level AI-related jobs have jumped by 30%, says Draup. Mukesh Chaudhary from Accenture reveals, “One in three companies is already experimenting with agentic AI,” which can take over whole workflows autonomously. So, routine tasks like fixing bugs or simple QA that helped beginners gain experience are vanishing in a puff of automation smoke. And it’s not just about coding! Administrative work, data entry, marketing, and customer support—jobs meant for rookies to learn—are now where AI runs its first tests. Hence, ‘the intern is the new employee.’ Vijay Swaminathan, CEO of Draup, shouts out, “Companies want graduates to be productive from day one.” This means students must pick a path early: dive deep into specialties like data engineering or infrastructure, rather than jump around. Devashish Sharma, CEO of Taggd, adds, “Internships and hackathons have become the new probation period.” Recruiters now eye your GitHub, open-source projects, and side gigs before hiring. Atul Sahgal from Cognizant echoes this trend: though hiring 20,000 grads this year, the bar is high. “A lively GitHub repo speaks louder than marksheets.” But here’s the cruel twist—degrees alone no longer open the door. Graduates like Susie from Sheffield, who applied to over 700 jobs, got just one offer worth barely above a research stipend. Martyna, 23, sent 150 applications with hardly any replies and feels “disheartened and, frankly, lied to.” Even hospitality or retail jobs demand experience. Lucy from Lincolnshire ended up working at Greggs despite having a degree. Adding to the struggle, AI now reads your CV before humans. Everyone tries tricks like invisible fonts stuffed with job keywords, but it’s getting tougher. Willemien Schurer, whose son blasted 200 applications without success, wonders, “If everyone ticks all the boxes, how do you choose?” She fears hiring is drifting back to who you know, not what you know. Even as governments push skills-first hiring (dropping degree requirements), reality bites. For every 100 jobs removing degrees, only 4 more non-degree candidates get hired. On top of that, AI assistance in studies might make students pass classes but leaves them weak in basic thinking and writing—skills once considered easy are now “elite,” says a recruiter in London. Not all jobs are in danger yet. Microsoft Research lists 40 jobs AI can’t replace, including nursing assistants, welders, ship engineers, and mechanics — real hands-on, unpredictable work where machines can’t step in. So, what’s the survival mantra for young folks? Use university as a launchpad, not a parking spot. Build visible experience early—contribute to public projects, join open-source teams, publish work. Grow deep in your niche but know the wider picture. Master clear thinking, good writing, and teamwork—skills AI can’t fake. The job world is spinning fast. Those who adapt quickly and show their skills openly still have a shot. Old job routes may be closing, but new paths are waiting to be made — by YOU!

Read More at Economictimes

Tags: Ai impact, Job market, Graduates, Internships, Skills, Employment,

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