Tech's entry-level rocked by AI job fears

The landscape for engineering graduates is shifting dramatically, with AI now automating tasks once performed by junior engineers. This change means entry-level opportunities are shrinking, and the pressure to acquire skills beyond traditional university curricula is intensifying.

The Shrinking Job Market for New Graduates

Over the past three years, major tech companies globally have slashed entry-level hiring by more than 50%. This decline has left many recent graduates, particularly those in computer science, facing immense uncertainty. For instance, at India's Indian Institute of Information Technology, Design and Manufacturing, fewer than 25% of a graduating class of 400 have secured job offers. This situation generates significant anxiety among students, who are realising that the predictable path from an engineering degree to a tech career is no longer a given.

"It is really bad out there. Everyone is so panicked, even our juniors. As the degree end nears, the anxiety is heightened among all of us."

This sentiment is echoed across various regions, including India, China, Dubai, and Kenya, where students are encountering what some describe as a "jobpocalypse". Tasks such as debugging, software testing, and routine maintenance, traditionally assigned to new hires, are now increasingly handled by AI. This trend was highlighted in a report by SignalFire, a San Francisco-based venture capital firm, which noted that despite a slight rebound in 2024 hiring, only 7% of new recruits were recent graduates. Alarmingly, 37% of managers indicated a preference for using AI over hiring a Gen Z employee. The report concluded that even highly qualified engineering graduates are struggling to enter the tech sector, especially at leading firms. This aligns with findings from consulting firm EY, which reported a 20-25% reduction in entry-level roles within Indian IT services companies due to automation and AI. Similarly, job platforms like LinkedIn and Indeed observed a 35% drop in junior tech positions across major EU countries in 2024.

Evolving Employer Expectations

The rise of AI isn't just reducing job numbers; it's also reshaping the roles available. Employers now expect fresh graduates to handle a broader range of responsibilities, including sales, project management, and direct customer interaction. This means the traditional engineering degree, focused purely on technical skills, often feels inadequate.

Vahid Haghzare, a director at Silicon Valley Associates Recruitment in Dubai, points out a stark contrast to five years ago. Then, there was a "war for coders and developers", with around 90% of hires being for off-the-shelf technical roles. Now, he estimates that figure barely touches 5%. Companies seeking recent engineering graduates demand "additional responsibilities", such as client-facing roles and even sales. Some students, like Nishant Kaushik from eastern India, are adapting by seeking roles in sales or marketing, recognising the need to diversify their skill set.

The Skills Gap and the Need for Adaptability

The shift has also exposed a growing disconnect between university curricula and industry demands. Rita Sande Lukale, an electronics engineering student in Kenya, initially aimed for a role in system architecture. However, she's witnessed these roles diminish as AI takes over entry-level tasks like data logging and system diagnostics. Lukale believes that while AI isn't a "job destroyer", it fundamentally alters the type of engineers companies require. Graduates now need "higher-level skills, necessary to understand algorithms and use engineering judgement to troubleshoot complex and automated systems".

Experts suggest that universities are struggling to adapt their programmes quickly enough to meet these AI-driven industry changes. Liam Fallon, head of product at GoodSpace AI, notes that graduates are now expected to significantly increase their output by using AI tools. This forces students to upskill independently, outside their formal education.

The World Economic Forum's Future of Jobs Report 2025 further warns that 40% of employers anticipate staff reductions where AI can automate tasks. This projection underscores the urgency for both individuals and educational institutions to adapt.

The current model, where students spend three to five years on a computer science degree before seeking employment, is simply "not sustainable", according to Haghzare. He argues that students are "falling down a hole, and they don't know how to get out of it."

This situation highlights the critical need for a new approach to education and career development in the tech sector. Graduates must prioritise continuous learning, focusing on skills that complement AI, such as critical thinking, problem-solving, and interdisciplinary collaboration. For more on adapting to these changes, consider exploring articles on Future Work: Human-AI Skill Fusion or how to Build AI skills with new OpenAI courses. The rise of AI demands a proactive stance from aspiring engineers to navigate this evolving professional landscape.

For a deeper understanding of AI's broader impact on employment, the World Economic Forum's report provides comprehensive insights into future trends: World Economic Forum Future of Jobs Report 2023. This evolving environment also influences startup ecosystems, as seen with Toku Files IPO Prospectus with MAS, indicating a shift in what skills are valued across the industry.