AI cuts junior hiring, threatening career path for graduates

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A Harvard working paper tracking 62 million workers across 285,000 U.S. firms found that companies adopting generative AI reduced junior employment by about 9% within six quarters, while senior employment held steady. Morgan Housel, bestselling author of The Psychology of Money, raised the concern on The Tetr Podcast, saying he would still 'move mountains' to send his children to a good college but that AI is eliminating the junior positions where graduates have always learned how to work. Entry-level hiring at the 15 largest tech companies dropped more than 50% from pre-pandemic levels through 2024, with fresh graduates going from about 15% of all new hires to roughly 7%, according to SignalFire's 2025 State of Tech Talent Report, and its June 2026 update revised the decline to roughly 65% across 12 Tech Majors since 2019. IMF Managing Director Kristalina Georgieva said at the 2026 World Economic Forum in Davos that 60% of jobs in advanced economies will be affected by AI, and that tasks eliminated are usually what entry-level jobs present. The National Association of Colleges and Employers revised its hiring projection for the Class of 2026 upward to 5.6% in April 2026, but employers increasingly favor applicants who can point to concrete work they've already done.

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