Gen Z Faces Challenges in Entering the Job Market Amid AI Rise

College graduates are finding it increasingly difficult to secure their first jobs. Openings for entry-level software engineers have decreased, partly due to generative AI taking over more coding tasks. Big Tech companies highlight how AI boosts worker efficiency. Entry-level positions in management consulting and finance began declining last year, with some firms considering salary cuts due to AI handling more workload.

AI isn’t the only challenge for Gen Z. The unpredictable economy has employers cautious about hiring new graduates who require training. A survey by Handshake revealed that 62% of college seniors familiar with AI tools are concerned about its impact on job prospects, up from 44% in 2023. Computer science students are particularly worried, with 28% feeling “very pessimistic” about starting their careers in the current economy.

As of March, soon-to-be graduates submitted 21% more job applications on Handshake compared to the previous year, while job postings declined by 15%. Internship opportunities have also dropped below 2019 levels. If AI replaces entry-level work, new graduates may need alternative ways to acquire workplace skills not taught in college.

A Brookings Institution analysis found that some entry-level jobs, like preparing legal documents, are at high risk of automation. However, bosses recognize that AI isn’t a perfect solution for efficiency. A survey by UpWork showed that three-quarters of workers felt AI tools made them less productive.

Tech industry job postings fell from about 625,000 in January 2023 to 467,000 in March this year. Entry-level roles decreased from 24% to 21%, while demand for experienced workers increased. This shift follows rapid hiring during the pandemic and subsequent layoffs in 2023.

Despite challenges, some junior workers are learning to use AI effectively. Meelah Harkness, a recent graduate, used an AI course to help secure a marketing coordinator position. Christine Cruzvergara from Handshake remains optimistic about entry-level opportunities, emphasizing the importance of talent pipelines.

Students like Julia Fedorin are adapting by showcasing creativity and authenticity. Fedorin secured an internship with Shopify after posting a video on X, highlighting that AI should complement, not replace, human experience.
— new from Business Insider

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