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Big Tech stops hiring new graduates, as entry level jobs dry up

Some managers prefer AI to grads, and it is compounding.
Gradute hirings in Big Tech is plummeting, as some say they prefer AI for easier tasks. (Picture: Jordanhill School D&T Dept, CC BY 2.0)
37% of managers now say they’d rather use an AI than hire a Gen Z employee, according SignalFire’s latest job market report.

The report tracks 650 million professionals and 80 million organizations, and its headline numbers are stark, showing a 35 % drop in graduate hiring in 2024 compared to 2023, and a 50 % drop compared to pre-pandemic levels.

Even top computer science grads are struggling to break in, the report finds, with hiring down 50 % since 2022.

Not just AI to blame
The decline isn’t solely due to AI, however. SignalFire points out that we have just been through a period of «free money madness» driven by low interest rates, that resulted in overhiring in many companies.

They do, however, say that AI tools are taking over more routine, entry-level tasks typically performed by graduates with no experience, and are doubling down on machine learning and data engineering these days.

Rise of the generalist AI worker
Demand for experienced engineers is rising, though, and the report predicts «the rise of the generalist engineer.» While specialists won the last decade, they say, AI tools on the rise means engineers no longer need deep machine learning expertise to build with AI.

The idea is that companies will prioritize flexible, collaborative and general engineers who can effectively use AI tools in production.

Some new roles emerging
The report also finds a bunch of new roles emerging in the AI space, like AI governance lead, AI ethics and privacy specialists. This will take time to fully catch on, SignFire says.

As entry-level jobs are quietly disappearing, SignlFire says the road forward for recent grads lies in bootcamps, open-source, and freelancing.

It might not be enough to master the latest AI tools, they warn, saying instead you need to learn how to fix their flaws, and that debugging messy AI code will the road forward.

SignalFire’s people and talent partner, Heather Doshay, sums it up to TechCrunch: — AI won’t take your job if you’re the one who’s best at using it.

See also: Big Tech embraces AI coding, hitting 30% of software

Read more: The SignalFire State of Talent Report – 2025, TechCrunch adds details, quotes.

Author Tor FosheimPosted on 28. May 202531. May 2025Tags AI, research, work

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