Graduates face AI job market challenges and opportunities

Rapid advances in artificial intelligence (AI) have raised concerns about job redundancy, particularly for graduates. Entry-level jobs like form-filling and data entry, often seen as "drudge work," are increasingly being automated. Over the past two and a half years, the availability of such roles has dropped by a third, and graduates are facing the toughest UK job market since 2018.

Key Takeaways from Experts

1. Economic and AI Factors Drive the Crisis

Kirsten Barnes of Bright Network notes that the graduate job market fluctuates by 10-15% annually, with current shifts driven by economic conditions rather than AI alone. Claire Tyler from the Institute for Student Employers (ISE) adds that none of the companies reducing graduate recruitment cited AI as the reason. Some experts point to the recent increase in employer national insurance contributions as a factor.

2. AI’s Growing Impact

Auria Heanley of Oriel Partners reports a 30% drop in entry-level roles, attributing it to AI and economic uncertainty. Felix Mitchell of Instant Impact observes that Stem (science, technology, engineering, and mathematics) jobs are most disrupted, with job losses outpacing gains.

3. The AI Revolution Accelerates

Tech giants like Microsoft are promoting AI agents as workplace assistants, with early adopters including McKinsey and Clifford Chance. Dario Amodei of Anthropic warns that AI could eliminate half of entry-level office jobs in five years. James Reed of Reed employment agency calls 2025 "the year of AI," while Sophie O’Brien of Pollen Careers predicts a "workforce crisis" as desk-based jobs become redundant.

4. The Need for AI Skills

David Bell of Odgers reports that law firms now demand AI competence from graduates. James Milligan of Hays emphasizes that jobs evolve, and graduates without AI skills will be at a disadvantage. Chris Morrow of Digitalent highlights new AI-adjacent roles like AI ethics and prompt engineering. Louise Ballard of Atheni.ai criticizes universities for failing to teach basic AI literacy.

5. AI in Job Applications

Bright Network reports that 50% of graduates now use AI for applications, up from 38% last year. Teach First plans to reduce reliance on written submissions to counter AI-drafted entries. James Reed notes that CV errors, once red flags, may now indicate human authorship.

6. Opportunities in Smaller Businesses

Sophie O’Brien points out that SMEs, which employ 60% of the UK workforce, often lack AI expertise, creating opportunities for graduates. Dan Hawes of the Graduate Recruitment Bureau highlights a "hidden market" of smaller employers desperate for skilled graduates.

"The job market could look vastly different in even a year’s time," warns O’Brien, underscoring the urgency for graduates and educators to adapt to the AI-driven landscape.