As AI adoption accelerates, the on-ramp to work for graduates is narrowing. Entry-level roles that once provided a reliable first step are increasingly under threat.
TL;DR
- In the U.S., early-talent postings are down over 16% year-over-year, while applications per job are up 26%. Intern-to-job conversions fell to 62%, the lowest in five years.
- Canadian graduates are looking at 11.2% unemployment, the highest since the mid-1990s .
- In the UK, entry-level jobs have fallen 32% since ChatGPT, now only 25% of postings, with some grads submit 1,200+ applications to land a role.
- Practical fix: Employers must redesign early-career roles as learning experiences, Twenty44’s AI Adoption framework balances AI adoption with talent development for existing and new employees.
Will AI Change What Awaits Students After Graduation
Students are heading back to campuses where AI is already part of the learning toolkit. But the larger uncertainty isn’t how they’ll use it in class — it’s whether AI adoption will reshape, or even erase, the entry-level jobs waiting when they graduate.
While a portion of graduates continue to secure roles, the traditional entry-level bridge is breaking down for the majority. In the U.S., Handshake data shows early-talent postings are down over 16% year-over-year, with applications per job up 26% (Business Insider). NACE reports intern-to-job conversions have fallen to 62%, the lowest in five years (NACE). In Canada, Statistics Canada reports graduate unemployment at 11.2%, the highest since the mid-1990s (Pearson report). And in the UK, Adzuna data shows entry-level vacancies have dropped 32% since November 2022, now only 25% of postings (Guardian). High Fliers research adds that final-year students applied to an average of 21.7 jobs, with just 27% accepting roles by February (Financial Times).
Are entry-level opportunities actually disappearing?
The evidence points to yes, but the bigger question is why. Job ads and hiring numbers are already down, but the bigger issue is that several trends are coming together to make it harder for graduates to land their first job.
One driver is that internships are no longer the easy bridge to a job they once were. Intern-to-job offers are at their lowest in five years, so more interns are finishing without a full-time role to move into. At the same time, experience creep is raising the bar — Deloitte reports that 61% of employers have increased experience requirements, and many “entry-level” roles now demand two to five years of experience.
Students also face application overload. Data from High Fliers shows final-year students are submitting an average of 21.7 applications, with only 27% securing offers by February. For some, the volume is extreme: The Times reported one UK graduate submitted 1,219 applications before landing a job.
In short, numbers confirm that entry-level opportunities are thinning out, but the bigger story is how hiring practices, application volume, and weak internship pipelines are compounding the problem.
What’s driving the squeeze?
AI eats the bottom rungs. A Stanford study found that early-career workers (ages 22–25) in AI-exposed occupations experienced a 13% relative decline in employment since late 2022. In Canada, recruiters say AI can replace entire junior cohorts — one HR lead admitted, “tools like ChatGPT are increasingly occupying the first rung of the employment ladder”. In the UK, entry-level roles in finance fell by 50.8%, and IT services by 54.8%, according to Adzuna data.
How should employers respond?
Design entry-level as learning roles. Twenty44’s AI/44 AI Adoption Framework helps companies evaluate whether employees understand AI’s strengths, limits, and responsible use, which is crucial for mentoring juniors when some tasks are augmented by AI.
Balance AI + talent. Prioritize roles where AI augments junior work (drafting, QA, analysis) under supervision rather than replacing it outright.
Adopt skills-based hiring. Hire based on what people can do, not just what’s on their résumé. Instead of demanding years of experience, give candidates chances to show their skills through work samples, short-term projects, or clear internship-to-job pathways.
Final Takeaway: Designing Entry-Level for an AI Era
Whether in the U.S., Canada, or the UK, the message is consistent: the first rung of the career ladder is disappearing. Graduates face fewer postings, weaker internship opportunities, and AI automating much of the work they used to cut their teeth on.
The fix isn’t to put the breakes on AI. It’s to plan for it. By using Twenty44’s AI/44 AI Adoption Framework, companies can make entry-level roles viable again: structured, mentored, and AI-augmented. Because when students head back to school each fall, they deserve a future where graduates still see opens doors, not closed ones.
Randy Matheson
Randy Matheson is an innovation strategist with a 25+ year proven track record of turning ideas into digital products. He specializes in working with Generative AI for content creation and using cutting-edge AI tools to create and interact with virtual audiences. He operates out Hamilton, Ontario where he resides with his partner and two large dogs.