The World Economic Forum (WEF) has urged companies to continue hiring fresh graduates even as they integrate artificial intelligence (AI), warning that scaling back entry-level recruitment could damage the talent pipeline essential for future growth and leadership.
In its latest insight report titled "Artificial Intelligence and the Future of Entry-Level Work: A Framework for Safeguarding and Reinventing Early Career Pathways", the WEF acknowledged that AI is reshaping entry-level roles but stressed that organizations should redesign these positions rather than eliminate them.
Current Hiring Slowdowns and AI Exposure
The report noted that "current hiring slowdowns at entry-level are evident" but added that "AI's role remains contested." It pointed out that while hiring has weakened more in occupations with higher AI exposure, broader economic factors are also contributing to the slowdown.
The WEF urged companies to make "entry-level hiring an explicit component of strategic workforce planning, with clear targets to maintain or grow intake alongside AI adoption." It warned that failing to do so could unintentionally reduce access to early career opportunities and create long-term capability gaps.
Skills Change and Workforce Shifts
The report highlighted that skill requirements for entry-level roles are changing rapidly. Entry-level jobs with the highest AI exposure are witnessing nearly twice the rate of skills change compared with non-entry-level roles. Additionally, 28 per cent of entry-level workers believe that half or fewer of their current skills will remain relevant within the next three years.
Despite AI reshaping traditional white-collar career pathways, the report noted a significant shift in the labor market: more young people are turning towards blue-collar and skilled trade jobs. Citing recent US research, the WEF reported that 42 per cent of Gen Z workers are either employed in or pursuing blue-collar and skilled trade jobs, including 37 per cent of those holding bachelor's degrees. US payroll data also showed that the share of blue-collar employment among workers aged 20-24 has increased by around 2.3 percentage points since 2019.
Implications for Companies, Educators, and Policymakers
According to the WEF, these trends indicate that traditional pathways into white-collar employment are becoming more fragmented as AI reshapes the workplace. The report emphasized the importance of collaboration among companies, educators, and policymakers to preserve meaningful entry-level opportunities while preparing workers for an AI-enabled future.
The report concluded that "entry-level roles remain a deliberate part of workforce planning, contributing to both organizational productivity and long-term capability planning." It outlined a framework for businesses adopting AI to safeguard and reinvent early career pathways.
