Is AI Making It Harder for New Grads to Get Hired in Tech?
Entry-level roles are disappearing, AI is automating routine work, and experience is now everything. What happened to Silicon Valley’s love for fresh talent?

Once the beating heart of Silicon Valley’s rapid innovation, recent college graduates are now finding themselves on the outside looking in. Gone are the days when tech companies welcomed inexperienced but eager young professionals with open arms. Today, the pathway to a tech career has become steeper — and AI might be partly to blame.

From Open Doors to Closed Ranks: How Hiring Has Changed

Before 2020, tech companies frequently hired recent grads, valuing their fresh perspectives and adaptability. But the COVID-19 pandemic marked a turning point. Since then, cautious hiring practices, economic uncertainty, and an increasing reliance on automation have transformed the industry’s appetite for early-career talent.

According to a recent report , hiring of new college graduates at tech companies dropped 25% in 2024 compared to the previous year. That figure is even more stark when compared to pre-pandemic levels, showing a decline of over 50% since 2019.

Startups, typically seen as the best playground for fresh graduates, aren’t immune either — they hired 11% fewer grads last year than in 2023.

 

Unemployment Among Grads Soars While Experience Is Prioritized

The Federal Reserve Bank of New York reports that unemployment among recent college graduates has risen by about 30% since the pandemic’s lowest point. In contrast, the broader workforce saw unemployment rise by just 18% over the same period.

Historically, young graduates were often employed at higher rates due to their willingness to accept lower pay and eagerness to prove themselves. But according to The Atlantic, college grads today face the worst job market in over 40 years — a trend that’s forcing many to rethink their place in the tech world.

AI Isn’t Replacing Workers — But It’s Replacing Entry-Level Tasks

So how much of this is AI’s fault? The answer is… complicated.

AI isn’t outright eliminating human jobs at a massive scale — at least not yet. But it is automating the kinds of repetitive tasks that entry-level workers used to handle: data entry, compiling reports, basic testing, and more. These tasks once served as stepping stones for new grads to gain experience, but now, AI is doing them faster and at scale.

As noted in report:

“Today’s tech employers aren’t looking for potential, they’re looking for proof.”

This leaves recent grads — even those with computer science degrees — trapped in a catch-22: they need experience to get hired, but they can’t get experience without being hired.

The Paradox of Progress: Is AI Helping or Hurting Workplace Potential?

While AI continues to dominate headlines and drive innovation at tech giants like Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla, there’s a growing gap between AI’s potential and its actual impact on hiring.

Some research even suggests that AI can boost productivity but also diminish job satisfaction**, especially among younger employees who are still seeking purpose and engagement in their work.

Meanwhile, companies are slow to fully integrate newer tools like AI agents into daily workflows, leaving the benefits of AI unevenly distributed — and the disruption felt most acutely by those just starting their careers.

Final Thoughts: Will the Ladder Be Rebuilt for New Talent?

As the tech world barrels forward with AI-driven innovation, the industry must ask itself an uncomfortable question: Who gets left behind in the race for progress?

For now, recent grads are paying the price for an industry that once prized boldness and potential but now favors proof and polish. Whether this is a short-term blip or a long-term shift depends on how companies choose to balance innovation with inclusion in the years ahead.

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