The AI Daily Brief (Formerly The AI Breakdown): Artificial Intelligence News and Analysis Is AI Already Shrinking Entry-Level Tech Jobs?
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May 29, 2025 The discussion reveals a significant decline in entry-level tech jobs, with hiring dropping 25% from last year and over 50% since 2019. It explores how AI advancements, like new functionalities in platforms such as Claude and Blitzy, are reshaping the software development landscape. The implications of these changes for recent graduates are alarming, as traditional pathways to entry-level positions are vanishing. The talk also touches on major tech companies restructuring to adapt to AI, highlighting the urgent need for strategies to navigate this evolving job market.
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AI Shrinks Entry-Level Tech Jobs
- Entry-level hiring in big tech has declined drastically, dropping 25% in 2024 and over 50% since 2019.
- AI adoption is partly responsible as companies prioritize higher-leverage technical roles over routine entry-level jobs.
Rising Unemployment Among New Grads
- Recent college grads face higher unemployment rates than the general population, the worst since 2013 excluding the pandemic.
- Many are turning to law school as a refuge amid the tough job market.
AI Drives a Hiring Reset
- The decline in entry-level hiring is driven by tighter budgets after pandemic funding booms and evolving company hiring strategies.
- AI adoption accelerates a hiring reset favoring roles with high technical impact while shrinking non-technical functions.