Recent insights from industry insiders reveal a significant shift in hiring patterns among leading technology firms. Notably, major players such as Meta, Microsoft, and Google have noticeably reduced their intake of recent graduates in 2024, signaling a potential transformation in the tech employment landscape. This trend is increasingly linked to the rapid advancement of artificial intelligence, which is poised to automate many entry-level responsibilities traditionally performed by new hires.
According to a comprehensive analysis by SignalFire, a venture capital firm that tracks employment movements across over 650 million workers and 80 million companies on LinkedIn, the proportion of fresh graduates hired by top tech companies has plummeted. In 2024, these firms accounted for just 7% of new hires, marking a 25% decline from the previous year and a drop of more than half compared to pre-pandemic levels in 2019. The situation is even more stark within startup environments, where the share of recent graduates hired has fallen from 30% in 2019 to below 6% in 2024.
Automation and AI: Catalysts Behind the Hiring Decline
Asher Bantock, SignalFire’s head of research, emphasized to TechCrunch that there is compelling evidence pointing to AI as a primary driver behind the shrinking number of entry-level tech roles. He explained that many of these positions involve repetitive, routine tasks that are increasingly susceptible to automation. For example, AI systems are now capable of writing code and conducting financial analyses, reducing the need for human intervention in these areas.
Expert Predictions on AI’s Impact on Employment
Dario Amodei, the CEO of the AI startup Anthropic, which is valued at approximately $61.5 billion, shared his outlook with Axios that within the next five years, AI could eliminate up to half of all entry-level white-collar jobs. He warned that such a shift could lead to unemployment rates soaring to between 10% and 20%. Earlier this year, Amodei also predicted that AI might be capable of generating the majority of code for large corporations within a year, highlighting the rapid pace of technological change.
During a March event hosted by the Council on Foreign Relations, Amodei expressed concern about the broader implications of AI on employment. He noted that many workers are unaware of the impending disruptions, as the full scope of AI’s capabilities and its potential to displace jobs remains underappreciated by the general public. “Most people don’t realize this is about to happen,” he remarked, emphasizing the need for proactive measures to address these changes.
Potential Sectoral Disruptions and Future Outlook
Research from the Brookings Institution indicates that AI could automate over half of the tasks currently performed by entry-level roles, including positions like market research analysts, graphic designers, and sales representatives. Conversely, roles requiring more experience and specialized skills are expected to face significantly lower risks of automation, with estimates suggesting up to a fivefold difference in vulnerability.
Meanwhile, Harvard Business Review projects that AI could impact around 50 million jobs in the coming years. While some roles may be phased out, AI is also anticipated to augment workers’ capabilities, enabling them to perform their tasks more efficiently and creatively. This dual effect underscores the importance of adapting workforce skills to thrive in an evolving technological environment.
