Alarming trend as AI eats into jobs: Tech companies' hiring of new grads has plummeted over 50% since 2019

For this year's graduates, finding a job could be more difficult than ever, particularly in the technology industry, as per a new report.

Big Tech Slashes Entry-Level Hiring

The latest data provided by venture firm SignalFire indicates that the tech industry's biggest players have significantly reduced their hiring of fresh college graduates, cutting entry-level recruitment by over 50% since 2019, as per TechCrunch report. SignalFire's analysis also found that before the pandemic, graduates consisted of 15% of Big Tech hires, which has now fallen to only 7%, according to the report.

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AI Is Reshaping the Job Market

Experts caution that this change is indicative of a larger transformation occurring in the tech sector, fueled primarily by artificial intelligence (AI), as per TechCrunch. LinkedIn's chief economic opportunity officer Aneesh Raman told The New York Times that AI is "breaking" the "bottom rung of the career ladder" by displacing much of the stepping-stone jobs that previously assisted early-career workers in finding a way into a company, as per the report.

More Tech Jobs Are Coming

However, it's not all that bad as the technology sector is not shrinking, instead, the tech roles are spreading across all industries, from healthcare to finance to retail, reported TechCrunch.

New research revealed that tech jobs are expected to expand from 6 million this year to 7.1 million by 2034, as per the report. While, even currently, software developers face only 2.2% unemployment, which is not great but is half the national rate, according to TechCrunch.

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AI Skills Are Becoming Essential

The key to getting a job is to focus on AI as companies increasingly want AI skills, and a survey found that 87% of hiring leaders value AI experience, while about a quarter of all job postings now require it, according to Wall Street Journal.

FAQs

Why is it harder for new grads to get hired in tech now?
Because Big Tech has slashed entry-level hiring by over 50%, many of the fresher jobs just aren’t there anymore.

Are tech companies firing people or just hiring less?
They’re hiring less, especially new grads. The total number of jobs may still be growing, just not for entry-level workers.