As AI continues advancing, its subtle but growing influence on hiring is reshaping the entry-level job market.
A new labor trend is quietly unfolding within tech, that is, fewer fresh graduates are being hired, while professionals with some experience are seeing increased demand. Data reviewed by SignalFire — a venture capital firm that tracks workforce movement across millions of LinkedIn profiles — reveals a significant drop in junior recruitment at tech firms during 2024 compared to the previous year.
SignalFire’s tracking indicates a 25% decline in graduate hiring among top technology companies. Startups also reduced their intake of new grads, though by a smaller margin — around 11% year-over-year. While exact numbers weren’t disclosed, the dip accounts for several thousand fewer positions than in 2023.
This shift coincides with an increase in hiring activity for workers with two to five years of experience. Big Tech firms reportedly expanded hiring for this group by 27%, with smaller tech companies raising their demand by 14% over the same period.
Although multiple factors influence hiring decisions, the role of AI appears difficult to ignore. Routine tasks — the kind often assigned to entry-level staff — are becoming increasingly automated. From writing and debugging code to analyzing financial data and installing software, modern AI tools now handle many responsibilities once reserved for junior employees.
In the financial sector, the picture looks similar. While large investment banks haven’t publicly slashed junior hiring due to AI, internal discussions at major firms have hinted at upcoming cuts. Some executives, influenced by AI’s growing capacity, have reportedly considered shrinking analyst teams and rethinking compensation structures, reflecting the decreased workload associated with these roles.
The changing landscape leaves recent college graduates in a familiar but now AI-amplified bind: lacking experience disqualifies them from roles, yet no roles exist to help them gain it. The cycle, though not new, has become more severe as automation chips away at traditional entry points into the workforce.
Still, demand hasn’t faded entirely. Instead, it has shifted. Tech companies now show a clear preference for professionals already seasoned by a few years of hands-on experience. This preference reveals how AI may not be eliminating roles wholesale, but rather raising the bar for entry.
For those seeking a way in, familiarity with AI tools has become more than a bonus — it's emerging as a necessity. The ability to collaborate with, not compete against, intelligent software could determine who thrives in this evolving job market.
Read next: $2 Billion in Fraud Stopped as Apple Tightens App Store Security
A new labor trend is quietly unfolding within tech, that is, fewer fresh graduates are being hired, while professionals with some experience are seeing increased demand. Data reviewed by SignalFire — a venture capital firm that tracks workforce movement across millions of LinkedIn profiles — reveals a significant drop in junior recruitment at tech firms during 2024 compared to the previous year.
SignalFire’s tracking indicates a 25% decline in graduate hiring among top technology companies. Startups also reduced their intake of new grads, though by a smaller margin — around 11% year-over-year. While exact numbers weren’t disclosed, the dip accounts for several thousand fewer positions than in 2023.
This shift coincides with an increase in hiring activity for workers with two to five years of experience. Big Tech firms reportedly expanded hiring for this group by 27%, with smaller tech companies raising their demand by 14% over the same period.
Although multiple factors influence hiring decisions, the role of AI appears difficult to ignore. Routine tasks — the kind often assigned to entry-level staff — are becoming increasingly automated. From writing and debugging code to analyzing financial data and installing software, modern AI tools now handle many responsibilities once reserved for junior employees.
In the financial sector, the picture looks similar. While large investment banks haven’t publicly slashed junior hiring due to AI, internal discussions at major firms have hinted at upcoming cuts. Some executives, influenced by AI’s growing capacity, have reportedly considered shrinking analyst teams and rethinking compensation structures, reflecting the decreased workload associated with these roles.
The changing landscape leaves recent college graduates in a familiar but now AI-amplified bind: lacking experience disqualifies them from roles, yet no roles exist to help them gain it. The cycle, though not new, has become more severe as automation chips away at traditional entry points into the workforce.
Still, demand hasn’t faded entirely. Instead, it has shifted. Tech companies now show a clear preference for professionals already seasoned by a few years of hands-on experience. This preference reveals how AI may not be eliminating roles wholesale, but rather raising the bar for entry.
For those seeking a way in, familiarity with AI tools has become more than a bonus — it's emerging as a necessity. The ability to collaborate with, not compete against, intelligent software could determine who thrives in this evolving job market.
Read next: $2 Billion in Fraud Stopped as Apple Tightens App Store Security
