Recently, with the continuous advancement of artificial intelligence (AI) technology, more and more people are beginning to pay attention to its potential impact on the labor market. According to a survey by the World Economic Forum, about 40% of employers plan to reduce their workforce and automate certain tasks using AI.
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SignalFire is a data-driven venture capital company that has discovered preliminary signs of AI's impact on hiring trends by analyzing the recruitment dynamics of over 600 million employees and 80 million companies on LinkedIn. In its study of hiring trends, SignalFire noticed that in 2024, the number of entry-level positions at major tech companies was significantly lower than in 2023. Specifically, among the top 15 large tech companies, the hiring of new graduates decreased by 25%, while startups reduced their hiring by 11%. Although SignalFire did not disclose the exact number of reductions, its spokesperson stated that this figure could reach into the thousands.
While the adoption of new AI tools may not fully explain the decline in hiring for recent graduates, Asher Bantock, the research director at SignalFire, pointed out that there is "compelling evidence" indicating that AI is a significant factor. Entry-level positions often involve repetitive and low-risk tasks, which are easily replaceable by generative AI. The capabilities of AI in coding, debugging, financial research, and software installation mean that companies may need fewer people to perform these tasks. This could result in some entry-level positions no longer being required.
Take Gabe Stengel as an example, the founder of AI-based financial analysis startup Rogo. In his early work at Lazard Investment Bank, he helped large pharmaceutical companies acquire biotech startups, while Rogo's tools "could almost do all the work I used to do in those analyses." Although most large investment banks have not yet explicitly reduced the hiring of analysts due to AI, according to reports by The New York Times, executives from companies like Goldman Sachs and Morgan Stanley considered reducing junior staff hiring by up to two-thirds and lowering the salaries of newly hired employees because AI usage made job requirements less demanding.
Despite the real threat AI poses to low-skill jobs, demand for experienced professionals at tech companies continues to rise. According to SignalFire's report, Big Tech companies increased their hiring of professionals with 2 to 5 years of experience by 27%, while startups in the same experience range also increased their hiring by 14%. This creates a frustrating paradox for recent graduates: they cannot get a job without experience, but they cannot gain experience without a job. Heather Doshay, talent partner at SignalFire, said that this dilemma has become more severe under the influence of AI. She suggests that new graduates master AI tools: "If you can use AI tools best, it won't replace your job."
Key points:
1️⃣ A World Economic Forum survey shows that 40% of employers plan to cut staff through AI.
2️⃣ SignalFire’s research found that in 2024, the hiring of entry-level graduates by tech companies dropped significantly, especially with large tech companies reducing their hiring by 25%.
3️⃣ For recent graduates, mastering AI tools has become crucial to enhancing employment competitiveness.
