technology
AI and experience creep squeeze entry-level jobs for recent graduates
Employers are asking for more experience and investing in AI and infrastructure, which together are reducing junior job openings and raising unemployment among recent graduates.
Apr 3rd 2026 · United States
Insights
- Recent college graduate unemployment rose to about 5.7% in Q4 2025, above the 4.2% rate for all workers and 3.1% for college grads of all ages.
- Job postings open to candidates with 2 to 4 years of experience fell from 46% in mid-2022 to 40% in mid-2025 while postings requiring 5 or more years rose from 37% to 42%.
- Stanford research finds substantial declines in early-career employment in occupations most exposed to AI, such as software development and customer service.
- Companies are increasing AI-related capital investment, which may reduce labor demand through a capital-labor trade-off rather than direct AI replacement of workers.
- Shrinking entry-level hiring in tech risks reducing the pipeline of future senior talent if junior roles and on-the-job training disappear.