## AI's Shadow in the Labor Market

Artificial intelligence may not be replacing all workers overnight, but its impact is already visible. A new study from Stanford’s Digital Economy Lab, titled *“Canaries in the Coal Mine? Early-Career Job Losses and AI Exposure”*, analyzed millions of U.S. payroll records over three years. Researchers found a striking pattern: **employment for 22 to 25-year-olds in AI-exposed jobs** such as software engineering, customer service, and marketing has dropped significantly.

## Older Workers Hold Steady

In contrast, older employees in the same roles have seen headcounts stabilize or even rise slightly. This divergence is specific to younger workers, suggesting that **AI disruption is eroding traditional entry-level rungs** that once provided pathways to long-term careers. Co-author Bharat Chandar explained, "For 22 to 25-year-olds, employment is falling in the most AI-exposed jobs and rising in the least exposed jobs."

## A Shift Toward Safer Fields

The findings also reveal that early-career workers outside AI-heavy fields—such as nurses, industrial laborers, or retail supervisors—have seen growth in employment. This implies that fresh graduates may be steering away from office-based "laptop jobs" vulnerable to automation, instead finding **stability in sectors less threatened by AI systems**.

## Why the Squeeze Is Happening

The reasons behind this trend are complex. Some firms use AI as justification for cost-cutting that might have occurred regardless, especially after the post-pandemic hiring surge. Others reflect a job market that was already tough for young entrants. Chandar noted, "Overall, the job market for entry-level workers has been stagnant since late 2022, while the market for experienced workers remains robust."

## Wages Stay Flat Despite AI Gains

Perhaps most striking, the study observed that **wages across age groups have remained stagnant since 2022**. Whatever efficiencies AI may be creating, they are not translating into better pay for employees. Instead, the benefits appear concentrated at the top, raising questions about equity in the AI economy.

By likening young workers to "canaries in the coal mine," the researchers suggest these early disruptions are harbingers of broader structural shifts. If entry-level employment opportunities disappear, entire career ladders may collapse, reshaping the workforce for decades.

A Stanford Digital Economy Lab study, “Canaries in the Coal Mine? Early-Career Job Losses and AI Exposure”, reveals AI’s early impact on the U.S. job market. Employment for 22 to 25-year-olds in AI-exposed roles like software engineering and marketing has dropped, while older workers remain stable. Non-AI fields show growth, suggesting young workers are shifting careers. Despite AI-driven efficiencies, wages have stagnated since 2022, raising concerns about inequality and long-term workforce disruption.

AI Is Already Disrupting Entry-Level Jobs: New Stanford Study Reveals Shocking Trends for Young Workers

# The Challenge of Starting Your Career

Growing up as the daughter of immigrants from Jamaica, Stacey Watson didn't see herself in the characters of the books she read. Now 28, she aspires to be a book editor who promotes a more **diverse range of story protagonists** so that young people feel represented. However, despite earning a **master's degree**, completing four internships, and working several part-time jobs, she hasn't landed a full-time staff position and lives with her parents in Brooklyn to make ends meet.

Watson's experience reflects the broader difficulties facing job seekers in today's economy. Economic uncertainty has led employers to hesitate in adding staff, and workers are less likely to leave their jobs, creating a stagnant environment. Since the coronavirus pandemic, the **unemployment rate for college graduates aged 22 to 27** has outpaced the general population's joblessness rate.

## Building Your Network

In a tight job market, having connections can make all the difference. When employers use **artificial intelligence to filter through hundreds of resumes**, a personal introduction can help candidates stand out. Start by leveraging internships, part-time jobs, **alumni networks**, and professional organizations to build relationships.

Jennifer Moglia, 22, shared her success story: during her music business internship, she created a spreadsheet to track everyone she met, their conversations, and shared interests. She then reached out on LinkedIn for one-on-one meetings, making it easy for contacts by offering to book times herself. This networking effort paid off—most of her interviews came from companies where she had connections, and she now works as a venue marketing coordinator for Live Nation Entertainment in New York.

## Keep an Open Mind

Flexibility is key. Consider jobs outside your college major or ideal career path if your chosen field is oversaturated. Skills are often transferable, and casting a wide net can lead to unexpected opportunities. As one expert noted, many 40-year-olds aren't working in the exact field they studied in college.

Luke Sutton, 24, a dramatic writing graduate, faced challenges due to the Hollywood writers' strike halting hiring. After applying for over 1,000 jobs, he landed a role as a creative assistant at a healthcare advertising agency. Though it wasn't his dream job, he emphasized the importance of staying open-minded and focusing on positions that utilize his writing skills.

## Adapting to Artificial Intelligence

As **artificial intelligence** becomes more prevalent, employers seek candidates who can use and adapt to this technology. Understanding AI's strengths and limitations is crucial, and adaptability is a highly valued skill. Some employers are delaying entry-level hires because AI can handle certain tasks, but AI can also help bridge experience gaps through virtual internships and apprenticeships.

## Give Yourself Grace

A prolonged job search doesn't reflect your worth. Economic factors often play a larger role than individual effort. It's important to stay persistent and not get discouraged. Aileen Ryan, 23, who has submitted 400 applications without an offer, continues to push forward, knowing her value and goals.

Remember, the job market is tough, but with networking, flexibility, and resilience, you can navigate these challenges and find your path.

Job market is tough for new workers as economic uncertainty has discouraged employers from adding staff and workers from leaving their jobs.

Unlock Your Dream Entry-Level Job: The Ultimate Guide to Networking and Flexibility in a Tough Market

There are significant short- and long-term benefits for employers to hire students, recent graduates, and others early in their careers for real estate roles. We gathered insights from 16 hiring experts to share their proven strategies.

## Build an Earn and Learn Pipeline
Lay down a career runway before you lay down a job description. One of the most effective approaches is to build an **earn and learn pipeline** where recruits are hired into a clear pathway with observable milestones, real mentorship, and cross-training. In Des Moines, we partner with local community colleges and universities, running **deal shadow days** where students learn step-by-step how deals turn profits. This hands-on experience attracts candidates seeking access, relevance, and a tangible future.

## Partner with Local Trade Schools
Overlooked goldmines, local trade schools and community colleges offer motivated students. By offering unpaid shadow days, students can follow acquisition teams and see real deal flow. This approach has led to an 87% retention rate compared to 41% from traditional hires.

## Offer Clear Purpose in Niche Markets
Early-career professionals want meaningful impact. Specializing in niche markets like probate homes provides clarity and purpose, leading to deeper engagement and faster growth. Recruit for purpose, not just numbers.

## Implement Data-Driven High-Volume Hiring
Use an **Applicant Tracking System (ATS)** with pre-screen video interviews and collaborative rubrics to screen for sales skills and coachability. Supplement with a rigorous employee referral program and a recruitment pitch deck featuring real success stories.

## Create Exclusive Market Partnerships
Offer territorial exclusivity to attract ambitious candidates. This model, like at ez Home Search, increases applicant numbers by 40% by providing a clear path to building a business without internal competition.

## Launch a Real Estate Academy Program
A structured **Real Estate Academy** serves as a recruitment, assessment, and training funnel. It includes broad attraction, immersive experiences with cohorts and mentors, and data-driven selection for smooth onboarding.

## Engage Students Through Hands-On Experiences
Connect with college career centers and offer internships or paid training. Hands-on experiences build your brand and help spot great talent early.

## Develop an Apprenticeship Shadowing Program
Newcomers shadow top performers for the first few months, providing support and a clear success path. This has successfully onboarded large numbers of agents with high retention.

## Host Property Deal Replication Competitions
Competitions with mentorship and real-life constraints sift out unserious candidates. Participants receive temporary license sponsorship and guaranteed onboarding based on performance.

## Organize Real Estate Data Sprint Events
Weekend boot camps analyze real-time market data and underwrite sample deals. Augmented reality scavenger hunts add a gamified element to assess field awareness and tech agility.

## Create Specialized Digital Content Campaigns
Instead of general job listings, use online courses or webinars to highlight niche problem-solving. Target university programs and online communities to attract genuinely interested candidates.

## Establish a Mentorship Model
Learning negotiation and listing management from veterans in person is highly effective. Mentorship provides practical skills that are hard to gain otherwise.

## Leverage Social Media for Targeted Recruitment
Use platforms like LinkedIn and Facebook for personalized posts and networking. Participate in career fairs and sponsor online events to reach newcomers.

## Focus on Employee Referrals
Referrals yield the best conversion rates. Motivate existing teams with rewards for successful referrals. Host honest Q&A sessions to provide clarity on commissions and daily requirements.

## Build University Partnerships for Talent Pipeline
Collaborate with college career centers and student organizations. Host workshops, offer internships, and speak in classes to build a long-term talent funnel with standardized onboarding.

## Host Interactive Real Estate Preview Days
Open house-style events let candidates shadow agents, observe negotiations, and participate in interactive activities like role-playing. This builds excitement and connections, making recruitment personal and efficient.

There are important short- and long-term benefits for employers to hire students, recent graduates, and others early in their careers for real estate roles. We reached out to 16 hiring experts to get their thoughts: Build an Earn and Learn Pipeline Lay down a career runway before you lay down a job description. One of the most […]


16 Game-Changing Strategies to Hire Top Early-Career Real Estate Talent

By Gary Espinosa

The rise of **artificial intelligence** is fundamentally altering entry-level employment, creating unprecedented challenges for recent college graduates. Last year, there was a **25% decrease in hiring of recent graduates** by major tech companies like Meta, Microsoft, and Google, compared to 2023. This represents thousands of fewer opportunities. As a whole, the hiring of recent graduates by big tech companies has **plummeted by more than 50% since 2019**.

I'll examine the state of the entry-level job market, particularly in the IT sector, what's driving the trends, the implications for both job seekers and businesses, and what can be done moving forward to kick-start IT careers.

## The Challenging Entry-Level Job Marketplace

Recent graduates now face **a nearly 6% unemployment rate**, surpassing the national average of 4.2%. Despite comprising only 5% of the total workforce, graduates aged 22-27 with bachelor's degrees **contributed 12% to the 85% rise in national unemployment** since mid-2023.

Many are laying the blame on the impact of AI, which is being applied to many of the duties that were once covered by entry-level workers. And this trend is likely to continue: Dario Amodei, CEO of Anthropic, warns that AI could eliminate up to **half of all entry-level white-collar jobs**. To many, this is a sign of the **bottom rung of the career ladder being irreparably broken**.

The transformation mirrors the 1980s automation wave that affected blue-collar manufacturing, but now targets cognitive work traditionally performed by college-educated professionals.

The level of competition for entry-level roles means that companies can now include ridiculous requirements. Many "entry-level" roles now **demand two to five years of prior experience**, creating an impossible barrier for new graduates.

## AI's Specific Impact on Entry-Level IT Careers

The IT sector has become ground zero for AI's disruption of entry-level employment. Hiring of new graduates by the 15 largest technology companies has **fallen by more than 50% since 2019**, while mid- and senior-level hiring rebounded in 2024.

Before the COVID-19 pandemic, new graduates **represented 15% of hires at major technology companies**; that figure has collapsed to just 7%. Even startups, once refuges for graduates unable to secure positions at larger corporations, are reducing headcount and hiring fewer entry-level candidates.

The average age of technical hires has **increased by three years since 2021**, reflecting companies' reluctance to invest in training junior talent. Furthermore, major firms like Salesforce and Shopify have explicitly stated their intention to meet growth needs **with code rather than human hires**.

There's been a stark change from past years when seniors commonly received significant sign-on bonuses and high-paying offers from multiple companies. Now, many students struggle to find post-graduation jobs, with startups preferring experienced professionals over recent graduates.

The business logic is straightforward: "Why hire an undergraduate when AI is cheaper and quicker?" While AI-generated code might not be top-tier, it often matches new graduate output while offering immediate iteration and improvement capabilities.

As a whole, the U.S. IT job market has shrunk with **a loss of 22,300 positions in 2024**, marking the second consecutive year of decline. IT unemployment increased from **3.9% in December 2024 to 5.7% in January 2025**, largely due to AI adoption.

Practically every aspect of the IT sector is facing increased automation and AI usage. It's not just technical responsibilities like **cloud monitoring** and **data entry**, but also supposedly "human-facing roles" like **sales** and **customer service** having many duties taken over by AI. With **83% of companies stating AI is a top business priority**, this trend is only going to continue.

## Short-Term and Long-Term Implications for Job Seekers

The obvious impact for job seekers is a significantly increased difficulty in securing employment. Technology internships now attract roughly **2.5 times as many applications as in an average year**, with data science and **software engineering** internships being over six times more competitive.

In the long term, we're likely to see a drastic shift toward workers who can effectively integrate AI into workflows. Being able to keep pace will be the most important skill in securing employment, whether you're a graduate or not: **39% of workers' existing skill sets** will be transformed or become outdated over the 2025-2030 period. Candidates will need to focus on human capabilities like **critical thinking, empathy, and problem-solving** that AI cannot replicate.

## Short-Term and Long-Term Implications for Businesses

Companies are experiencing immediate cost savings and efficiency gains. Companies like Duolingo, Klarna, and BT Group have already seen **significant layoffs due to AI's productivity benefits**. Short-term benefits include reduced payroll expenses and eliminated training costs.

Long-term challenges include potential threats to future leadership pipelines. The erosion of early-career development could create **a global shortfall of 85 million skilled workers by 2030**. However, successful AI integration could contribute up to **$15.7 trillion to the global economy** by 2030.

## Are New AI-Created Roles Enough to Fill the Void?

It's been estimated that **60% of jobs in advanced economies** are being altered by AI, with half potentially negatively affected in terms of their availability. However, some analysts are skeptical of predictions of massive short-term job extinction.

Historical precedents suggest technological innovations often create new roles while disrupting existing ones. E-commerce led to declining traditional retail jobs but created faster growth in better-paid e-commerce fulfillment positions.

AI is apparently spurring the emergence of new job titles: AI ethics officers, prompt engineers, machine-learning specialists, and automation engineers. Some argue that jobs don't die, they evolve and change.

However, a key concern is whether educational institutions and government policies can adapt quickly enough to teach necessary new skills, potentially creating a "workforce crisis" despite the emergence of new roles.

And let's be real: If AI is creating all these new jobs, why aren't there jobs available for new graduates? And it's worth querying the long-term viability of these roles: If AI is constantly evolving, improving, and finding new efficiencies, why will it require new human roles to run it when the aim for many AI companies seems to be self-sustainability? And do people actually want these roles? And, if you've spent tens of thousands of dollars on a college diploma, do you want your career to be maintaining the machines that have made your degree redundant?

## Securing Your Place: Advice for IT Career Aspirants

**Developing AI skills** and basic AI literacy is crucial in the evolving job market. Whether you're actively looking for entry-level roles or will be soon, you need to act now on AI or risk being left behind.

Alongside this, you need to cultivate essential human capabilities beyond technical skills: **critical thinking, emotional intelligence, problem-solving, and adaptability**. These enduring human capabilities are vital for navigating complex work and becoming increasingly predictive of success in the AI age. In fact, these qualities are often the ones looked for first on resumes, and showing them can be **crucial in securing an interview**.

While the number of available **tech internships might be declining**, seeking internships and apprenticeships offering context-rich, hands-on experience is essential for gaining industry footing, especially if higher levels of experience are being demanded for "entry-level" roles. If direct entry-level positions aren't available, consider starting in related roles to build skills and experience.

Explore opportunities in small-to-medium-sized enterprises. While big tech companies shrink entry-level hiring, SMEs account for large parts of the workforce and are often **desperate for talented IT professionals** regardless of their experience. Many SMEs lack AI knowledge, presenting opportunities for graduates to bring valuable skills.

You could even look into volunteer or non-profit opportunities that could supplement your resume with evidence of your skill sets and the value you can bring to an organization.

As a whole, we need to redefine readiness for work beyond traditional credentials. Job seekers and graduates need to focus on demonstrating potential and agility through well-honed human capabilities rather than relying solely on tenure or degrees. Companies are shifting to skills-first hiring, emphasizing demonstrated skills, motivation, and learning agility.

Embrace continuous learning and upskilling. The job market is in constant flux, requiring ongoing education through online courses, certifications, company-sponsored programs, workshops, and micro-credentials in AI and data literacy.

AI is fundamentally reshaping the job market, potentially eliminating half of entry-level white-collar positions within five years. Success in this landscape will require strategic approaches combining technical AI proficiency with uniquely human skills like critical thinking and emotional intelligence. The traditional career ladder may be broken, but new pathways emerge for those embracing continuous learning, seeking SME opportunities, and positioning themselves as AI partners rather than competitors.

The future belongs to IT professionals who navigate this transition thoughtfully, developing both technical skills to work alongside AI and irreplaceable human capabilities in an increasingly automated world.

About the author:

Gary Espinosa is an expert writer with over 10 years of experience in software development, web development, and content strategy. He specializes in creating high-quality, engaging content that drives conversions and builds brand loyalty. He has a passion for crafting stories that captivate and inform audiences, and he's always looking for new ways to engage users.

Recent college graduates face unprecedented unemployment as AI increasingly performs tasks once reserved for entry-level positions.

Is AI Stealing Your First Job? The Shocking Truth About Entry-Level IT Careers

A new workforce initiative is set to boost aerospace and aviation career opportunities in the St. Louis region, where nearly 50 aerospace companies are contributing $5 billion to the local economy.

### Educational Pathways to Lucrative Salaries

The initiative aims to educate high school students and job seekers about career paths in aerospace and aviation. Entry-level salaries in the aerospace sector vary depending on education level. **High school graduates** can expect to earn between **$50,000 and $55,000** annually. Those with a **two-year degree** may start at **$55,000 and up**, while a **four-year degree** can lead to salaries ranging from **$85,000 to $100,000** a year.

The initiative provides career paths for people based on their educational background, whether they are entering the workforce directly from high school or pursuing further education through two-year or four-year degrees.

[Learn more here](https://www.thefreightway.com/aerospace-aviation-careers-roadmaps/).

*All facts in this report were gathered by journalists employed by KTVI. Artificial intelligence tools were used to reformat from a broadcast script into a news article for our website. This report was edited and fact-checked by KTVI staff before being published.*

ST. LOUIS – A new workforce initiative is set to boost aerospace and aviation career opportunities in the St. Louis region, where nearly 50 aerospace companies are contributing $5 billion to the local economy. The initiative aims to educate high school students and job seekers about career paths in aerospace and aviation. Entry-level salaries in […]