Entry-Level Hiring in the AI Era: What Employers Are Thinking (and Doing)
Entry-level jobs have long represented the first step on the career ladder toward economic stability and mobility. But today’s world, with its constantly changing job market and the rapid rise of artificial intelligence, is making their role in launching a career feel more uncertain. As AI automates some of the tasks historically done by entry-level workers, are those jobs starting to disappear?
To understand better how entry-level hiring is evolving in the early AI era — and to help inform how learners, educators, and policymakers prepare for a changing job market — Strada Institute for the Future of Work surveyed nearly 1,500 executives and senior talent leaders across the country, representing the full range of industries and firm sizes. We asked them key questions relevant to people starting their careers: Is AI increasing or decreasing entry-level hiring? How is it changing the skills and qualifications employers expect? And which credentials, skills, and experience matter most for success in an entry-level job?
Key findings
Impact of AI Use on Entry-Level Hiring Volume: 2025 and Expected 2026
Decrease
Increase
10%
36%
11%
2025
3%
Prediction
for 2026
15%
35%
11%
2%
Significantly
Moderately
Decrease
Increase
2025
3%
10%
36%
11%
Prediction
for 2026
15%
35%
11%
Significantly
2%
Moderately
Moderately
Significantly
Decrease
Increase
2025
3%
11%
10%
36%
Prediction
for 2026
11%
15%
35%
Significantly
2%
Moderately
Moderately
Significantly
Decrease
Increase
11%
2025
10%
36%
3%
Prediction
for 2026
11%
15%
35%
2%
Significantly
Moderately
Employers indicate that AI tools are more likely to increase than reduce entry-level hiring in their organization. Nearly three times (2.7 times) as many senior talent leaders expect AI use to increase entry-level hiring in 2026 as to decrease it, indicating a mixed and often positive near-term outlook.
Single-Most Important Factor Anticipated to Impact the Number of Entry-Level Hires in 2026
Impact on hiring:
Negative
Positive
Greater use of AI in
your organization
16%
27%
Quantity of potential
qualified job candidates
23
15
Organizational
development capacity
3
14
Changing expectations
for pay, benefits, or
working conditions
8
12
Market factors or
economic conditions
33
12
10
11
Organizational change
6
9
Sourcing strategy
Impact on hiring:
Negative
Positive
16%
27%
Greater use of AI in your organization
Quantity of potential qualified
job candidates
23
15
3
14
Organizational development capacity
Changing candidate expectations
for pay, benefits, or working conditions
8
12
Market factors or
economic conditions
33
12
10
Organizational change
11
6
Sourcing strategy
9
Impact on hiring:
Negative
Positive
16%
27%
Greater use of AI in your organization
Quantity of potential qualified
job candidates
15
23
3
14
Organizational development capacity
Changing candidate expectations
for pay, benefits, or working conditions
8
12
Market factors or
economic conditions
33
12
10
11
Organizational change
6
9
Sourcing strategy
Impact on hiring:
Negative
Positive
Greater use of AI in
your organization
27%
16%
Quantity of potential
qualified job candidates
15
23
Organizational
development capacity
14
3
Changing expectations for pay,
benefits, or working conditions
12
8
Market factors or
economic conditions
12
33
11
Organizational change
10
9
Sourcing strategy
6
Greater use of AI is the most frequently cited significant positive driver of increased entry-level hiring. Among firms that reported at least one factor as significantly increasing entry-level hiring, 27 percent said greater use of AI in their organization was the most significant factor.
AI Impact on Entry-Level Job Tasks by Industry
AI tools have ...
... increased
analytical and
judgment-
based
responsibilities.
... reduced
foundational/
skill-building
tasks.
42%
41%
All industries
60
54
Tech
51
44
Manufacturing
Finance, real estate,
management,
and administrative
50
38
Trade and
transportation
39
41
Health, education,
and social services
32
39
Construction,
natural resources,
and utilities
31
40
Hospitality,
leisure, and arts
35
28
... reduced
routine or
administrative
tasks.
... had no
meaningful
change.
33%
20%
All industries
38
9
Tech
17
38
Manufacturing
Finance, real estate,
management,
and administrative
34
18
Trade and
transportation
30
25
Health, education,
and social services
33
22
Construction,
natural resources,
and utilities
36
22
Hospitality,
leisure, and arts
25
27
AI tools have ...
... increased
analytical and
judgment-based
responsibilities.
... reduced
routine or
administrative
tasks.
... reduced
foundational
or skill-building
tasks.
... had no
meaningful
change.
42%
41%
33%
20%
All industries
60
54
38
Tech
9
51
38
44
Manufacturing
17
Finance, real estate,
management, and admin.
50
38
34
18
Trade and
transportation
39
30
41
25
Health, education,
and social services
32
39
33
22
Construction, natural
resources, and utilities
31
40
36
22
Hospitality,
leisure, and arts
28
35
25
27
AI tools have ...
... increased
analytical and
judgment-
based
responsibilities.
... reduced
foundational
or skill-building
tasks.
41%
42%
All industries
60
54
Tech
51
44
Manufacturing
Finance, real estate,
management,
and administrative
50
38
Trade and
transportation
39
41
Health, education,
and social services
32
39
Construction,
natural resources,
and utilities
31
40
Hospitality,
leisure, and arts
28
35
... reduced
routine or
administrative
tasks.
... had no
meaningful
change.
33%
20%
All industries
9
38
Tech
17
38
Manufacturing
Finance, real estate,
management,
and administrative
34
18
Trade and
transportation
30
25
Health, education,
and social services
33
22
Construction,
natural resources,
and utilities
36
22
Hospitality,
leisure, and arts
25
27
AI tools have ...
... increased
analytical and
judgment-based
responsibilities.
... reduced
routine or
administrative
tasks.
... reduced
foundational
or skill-building
tasks.
... had no
meaningful
change.
42%
41%
33%
20%
All industries
60
54
38
9
Tech
51
44
38
17
Manufacturing
Finance, real estate,
management, and admin.
50
38
34
18
41
39
30
25
Trade and transportation
Health, education,
and social services
32
39
33
22
Construction, natural
resources, and utilities
31
40
36
22
28
35
25
27
Hospitality, leisure, and arts
AI appears to be shifting entry-level work away from routine and administrative tasks toward more complex responsibilities. More than 40 percent of employers report that AI has increased the analytical responsibilities assigned to entry-level employees, while a nearly identical share say it has reduced routine administrative tasks.
Importance and Performance of Entry-Level College Graduate Hires by Skill Area
Average rating of ...
Performance
Importance
4.0
4.3
Critical thinking
4.0
4.3
Communication
4.0
4.2
Collaboration
3.9
4.2
Workplace readiness
3.8
4.2
Self-management
4.0
4.1
Technical proficiency
3.8
3.9
Quantitative reasoning
3.5
3.6
AI literacy
1
Lowest
2
3
4
5
Highest
Average rating of ...
Performance
Importance
Critical thinking
4.0
4.3
Communication
4.0
4.3
Collaboration
4.0
4.2
Workplace readiness
3.9
4.2
Self-management
3.8
4.2
Technical proficiency
4.0
4.1
Quantitative reasoning
3.8
3.9
AI literacy
3.5
3.6
1
Lowest
2
3
4
5
Highest
Average rating of ...
Performance
Importance
4.0
4.3
Critical thinking
4.0
4.3
Communication
4.0
4.2
Collaboration
3.9
4.2
Workplace readiness
3.8
4.2
Self-management
4.0
4.1
Technical proficiency
3.8
3.9
Quantitative reasoning
3.5
3.6
AI literacy
1
Lowest
2
3
4
5
Highest
Average rating of ...
Performance
Importance
4.0
4.3
Critical thinking
4.0
4.3
Communication
4.0
4.2
Collaboration
3.9
4.2
Workplace readiness
3.8
4.2
Self-management
4.0
4.1
Technical proficiency
3.8
3.9
Quantitative reasoning
3.5
3.6
AI literacy
1
Lowest
2
3
4
5
Highest
Critical thinking and communication are valued more highly in entry-level hires than AI literacy. Employers rate AI literacy as the least important skill evaluated, while critical thinking and communication rank as the most important.
Employers’ Average Rank of Preference of Profiles of Recent College Graduates
Average rank
of preference
Lowest
Highest
Employers would hire
a candidate who ...
5
4
3
2
1
... has direct work
experience in a similar
role, but not an internship.
... had an internship at a firm
in the same industry.
... has project-based work
experience relevant to the role.
... worked outside of their
industry, such as restaurant
or retail, and developed
transferable skills.
... worked at a prestigious
firm outside their industry.
... held a campus leadership
role and had volunteer
experience, but no formal
work history.
... has a 4.0 GPA and
academic awards,
but no work history.
Average rank of preference
Employers would hire
a candidate who ...
Lowest
Highest
5
4
3
2
1
... has direct work experience in a
similar role, but not an internship.
... had an internship at a firm
in the same industry.
... has project-based work
experience relevant to the role.
... worked outside of their industry,
such as restaurant or retail, and
developed transferable skills.
... worked at a prestigious firm
outside their industry.
... held a campus leadership role
and had volunteer experience,
but no formal work history.
... has a 4.0 GPA and academic
awards, but no work history.
Average rank
of preference
Lowest
Highest
Employers would hire
a candidate who ...
5
4
3
2
1
... has direct work experience in
a similar role, but not an internship.
... had an internship at a firm
in the same industry.
... has project-based work
experience relevant to the role.
... worked outside of their industry,
such as restaurant or retail, and
developed transferable skills.
... worked at a prestigious
firm outside their industry.
... held a campus leadership role
and had volunteer experience,
but no formal work history.
... has a 4.0 GPA and academic
awards, but no work history.
Average rank of preference
Lowest
Highest
Employers would hire
a candidate who ...
5
4
3
2
1
... has direct work experience in a
similar role, but not an internship.
... had an internship at a firm
in the same industry.
... has project-based work
experience relevant to the role.
... worked outside of their industry,
such as restaurant or retail, and
developed transferable skills.
... worked at a prestigious firm
outside their industry.
... held a campus leadership role
and had volunteer experience,
but no formal work history.
... has a 4.0 GPA and academic
awards, but no work history.
Work experience is the most valued indicator of career readiness. When evaluating candidate profiles, employers that hire recent college graduates rank those with related work experience — such as internships or project-based learning — as most desirable, while a candidate with a 4.0 GPA and academic awards, but no formal work experience, is least preferred.
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