The Entry-Level Crisis: How Work-Based Learning Can Save Early Careers in the AI Era

For over two decades, a persistent challenge has plagued the workforce: employers lament new college graduates' lack of readiness for work, yet struggle to fill open positions for months. Meanwhile, graduates themselves face difficulties securing and maintaining meaningful jobs.

Recent research from SAP Success Factors reveals that traditional pathways for early talent are deteriorating further. AI is absorbing more entry-level work, and economic pressures are reducing headcount. Since 2022, there has been a 6% decrease in early talent employment, while the number of applicants per early talent job opening has doubled over the past five years.

At the UNLEASH conference in Las Vegas, HR and workforce experts convened to address the school-to-career transition in the AI age. Jason Averbook of Mercer highlighted that entry-level hiring needs major reform, noting that young workers often receive grunt work without context, making them vulnerable to AI replacement. Kyle Forrest of Deloitte urged schools to hold companies accountable for onboarding new grads, emphasizing that an effective transition requires effort from all sides.

Joey Price of Jumpstart HR stressed the importance of instilling qualities like discipline, self-control, and curiosity in young people early on.

Competency-Based Education and Work-Based Learning as Solutions

Cali Morrison of EdAssist by Bright Horizons pointed to competency-based education (CBE) as a resurgence in popularity. CBE models showcase skill mastery directly tied to real-world employment success.

A key approach within CBE is work-based learning (WBL), which includes pre-apprenticeships, apprenticeships, practicums, and clinicals. WBL provides work-aligned experience as part of education to prepare for careers and general employment.

High-quality WBL at the secondary school level equips students with human attributes and work-ready skills that employers find lacking. It helps them compete more effectively with AI and informs their next steps, whether further education or an entry-level role. The group agreed that WBL is invaluable for the school-to-work transition when executed through collaboration between communities, employers, and schools. However, scaling WBL poses challenges due to administrative burdens, costs, and measurement difficulties.

Jared Bazzell of Aristocrat, who has practical experience with WBL, shared insights from Las Vegas, where there's a growing need for manufacturing expertise amid a hospitality-trained workforce. He highlighted efforts to reskill workers using state funding and combat stigma around manufacturing careers, with WBL programs being a key strategy.

Through work with GPS Education Partners, a Wisconsin-based nonprofit scaling WBL, successful programs have helped tens of thousands of students avoid the entry-level career crisis. The next step is to gather quantitative data showing that WBL leads to better job outcomes and career trajectories, even as AI deployment increases. This evidence is crucial to institute WBL as a permanent feature in secondary education and address persistent skills gaps.

Ultimately, fixing youth employment is a collective responsibility. It involves corporate leaders, HR experts, education policymakers, nonprofits, and local schools. Launching a WBL program may seem daunting, but support is available through convener groups that manage such complexities. These groups unite stakeholders toward a common goal: resolving the entry-level hiring crisis one community at a time.