News that college graduates are struggling to enter the workforce (New York Times, The Economist, Fast Company) has been circulating—but AI isn’t totally to blame.
“Employers may not want to hire fresh graduates onto distributed teams because it is more difficult to teach them the requisite skills from afar," noted Fed research economist Natalia Emanual, referring to remote roles.
New research from Strada Institute for the Future of Work, which surveyed nearly 1,500 executives and senior talent leaders (49% senior HR professionals), supports that and reveals a more nuanced picture.
Why it matters: The fear that AI would quietly wipe out the bottom rung of the career ladder isn’t happening, at least not yet. If anything, employers are telling a more hopeful story.
When asked: Is AI increasing or decreasing hiring? Is it changing the skills and credentials employers expect? C-suite respondents all pointed to a less fatalistic redesign of entry-level jobs.
The big picture: AI is more likely to grow entry-level hiring than shrink it. Leaders who expect AI to add entry-level jobs in 2026 outnumber those bracing for cuts by nearly 2.7 to 1.
What the data shows:
-
In 2025, 46% of employers said AI increased their entry-level hiring; just 13% saw a drop, a nearly 4-to-1 split.
-
27% of respondents said their own growing use of AI is driving the gains.
-
The work itself is changing: 42% say entry-level roles now lean more analytical, while 41% say the routine admin tasks are fading. Tech (60%) and manufacturing (51%) feel it most.
-
Critical thinking, communication and collaboration are the top skills employers hire for. Humanities majors scored a 5 “excellent” in this category since writing and other soft skills are harder to automate. STEM majors also ranked high.
AI’s Impact on Entry-Level Job Tasks by Industry
Source: Strada Institute for the Future of Work Survey, May 19, 2026
What’s changed? The expectation is higher: Experience beats pedigree. 39% of employers say real work experience (internship or project-based learning) is more important than a 4.0 and academic awards.
What C-Suite is saying: As one manufacturing CEO put it, AI is “shifting entry-level roles toward higher-skilled work and increasing the need for tech-savvy candidates.”
The bottom line: Employers are zeroing in on candidates that have some work experience (even internships) and are eager for a hands-on experience. Data shows that work ethic and personality are qualities AI can’t fake and are still integral to a positive work culture.
