AI is shrinking the early-career ladder, and new grads in both the U.S. and Canada are feeling the impact as foundational tasks shift to automation and employers increasingly seek mid-career talent over emerging workers.
For new graduates preparing to enter the workforce, the early 2020s have ushered in a workplace transformed by automation, leaner company structures, and a shifting definition of what “entry level” means. A recent report from the Burning Glass Institute reveals how quickly that landscape is changing, and how deeply these changes are reshaping pathways into professional careers in the U.S. However, similar trends are emerging in Canada, suggesting that this is not just a U.S. phenomenon.
Drawing on millions of job postings, the BGI’s " No Country for Young Grads " report traces a sharp decline in junior hiring in fields heavily exposed to artificial intelligence. What once served as reliable launch pads for recent university graduates is now being supplanted by mid-career requirements, thereby shrinking opportunities for early learning, mentorship, and long-term professional growth. The findings indicate that digital transformation and employer expectations are rapidly converging, thereby redefining workforce norms.
AI-exposed roles lose their on-ramps
The report shows that employers have moved away from training-based entry roles in sectors where AI tools can already perform foundational tasks. Software development postings requiring three years or fewer of experience declined from 43% in 2018 to 28% in 2024. Data analysis roles dropped from 35% to 22%. Consulting, another classic entry point for graduates, declined from 41% to 26%. Senior-level demand in these sectors remained steady, suggesting that employers still want expertise, but increasingly expect workers to arrive fully formed.
A slowdown in hiring overall doesn’t drive this change. Job postings in tech, finance, and professional services have grown. The shift is happening within companies’ internal structures, where junior positions are being replaced with “plug-and-play” mid-career professionals who require minimal guidance.
AI is reshaping the learning curve
For decades, early-career employees learned through performing foundational tasks such as drafting reports, conducting research, preparing presentations, and supporting forecasting efforts. These activities provided hands-on experience that helped employees gain confidence and assume more complex responsibilities. According to the report, AI tools now complete much of this work instantly.
One expert quoted in the U.S. survey said, “AI is performing the exact tasks that helped new grads grow into experts. Now that AI does that groundwork, employers are skipping the bottom rung entirely.” That acceleration removes natural learning stages that helped younger workers develop practical workplace skills. As companies flatten their organizational charts, fewer opportunities exist for new talent to demonstrate their competence, adapt, and advance.
Canadian data echoes the concern
While the report focuses on U.S. job postings and hiring patterns, similar signs are emerging across Canada. A 2025 policy brief from the Future Skills Centre warns that the increasing use of AI and automation threatens the entry-level jobs that Canadian youth have historically relied on.
Journalistic reporting from 2025 indicates that many Canadian university graduates perceive fewer internship, co-op, and junior roles as AI tools increasingly take over tasks previously assigned to interns or new hires.
Analysts note that as businesses across Canada integrate AI, early-career workers are among the most vulnerable to displacement.
This suggests that while the U.S. may be slightly ahead on the trend, Canada’s young graduates face comparable risks.
The grad outcomes gap widens
The economic consequences for young, university-educated workers are becoming increasingly visible. In the U.S. population studied by BGI, unemployment among bachelor’s graduates aged 20-24 increased from 5.2% in 2018–2019 to 6.2% currently. Layoffs have doubled for this demographic, and more than half of the Class of 2023 is reportedly underemployed in roles that do not require a university education.
In Canada, youth — particularly those 15-24 — are also facing a deteriorating jobs market. Entry-level positions are becoming harder to secure as AI-driven automation reshapes demand and raises baseline skills requirements.
Why employers are raising the bar
The changing hiring patterns reflect a confluence of pressures:
- AI-powered efficiency: Tools such as generative AI and automation can produce many outputs that were previously assigned to junior staff.
- Lean staffing models: Companies applying lessons from post-pandemic restructuring have learned to maintain revenue with fewer, more experienced employees.
- Risk aversion: Following turnover challenges in recent years, organizations now prefer to hire experienced workers who require minimal onboarding.
This combination has amplified competition among early-career candidates and made traditional hiring pathways less reliable.
Broader consequences for talent pipelines
The disappearance of entry-level roles has implications that extend far beyond individual job seekers. Economies depend on a steady supply of emerging talent who step into professional roles, gain experience, and eventually move into leadership positions. When companies limit access to junior roles, they narrow their own talent pipeline and risk weakening long-term growth and innovation.
For Canada — with its highly educated workforce and economy reliant on skilled labour — this trend presents a serious challenge. Youth unemployment, underemployment, and blocked career paths could lead to wasted potential and weakened social mobility if entry-level opportunities continue to shrink.
What needs to change
If employers, educators, and policymakers expect to sustain a healthy workforce in the age of AI, they need to rethink how early-career development works. Some possible approaches:
- Reframe entry-level and early-career roles to include higher-value tasks that are harder to automate — for example, complex problem-solving, creative work, project coordination, and human-centred roles.
- Expand funding and support for work-integrated learning (internships, co-ops, apprenticeships) to ensure students graduate with practical experience that employers value.
- Encourage hiring practices that value potential and coachability, rather than prior experience alone.
- Develop public policies and incentives to support youth employment, particularly for recent graduates facing limited entry-level opportunities.
As AI transforms how work gets done, stakeholders must respond thoughtfully to preserve pathways for people to learn, contribute, and build careers. The shift documented in the U.S. and observed in Canada demands attention — because if young people lose access to the start of the career ladder, the long-term cost could be a decade of lost potential.