Facing the AI Career Crunch: What’s Next for Entry-Level Jobs?

June 9, 2025

3 minutes read

A recent university graduate in business-casual attire looks uncertain while standing across from a humanoid AI robot confidently using a laptop, with a glowing holographic chart showing a decline in entry-level jobs between them. — Facing the AI Career Crunch: What’s Next for Entry-Level Jobs?

Imagine graduating with a fresh degree and starting your first job—only to find out that the company expects you to deliver the work AI could already produce. That’s the dilemma many new grads face today.

At a Glance

Generative AI threatens up to 50% of entry-level white-collar roles
Fed data shows recent graduates face unemployment of 5.8% and underemployment at 41.2%
Despite disruption, new job roles and AI-literate positions are emerging
Key survival tactics: AI upskilling, human-centred skills and adaptability

The Threat to the Bottom Rung

As reported by Guardian TechScape, Dario Amodei, CEO of Anthropic, warned that up to half of entry-level white-collar jobs could vanish, pushing unemployment towards 20% within five years. His viewpoint was echoed by LinkedIn’s Aneesh Raman, who noted signs that AI already threatens jobs traditionally held by new graduates.

The US Federal Reserve backs this up. Their Q1 2025 data show a 5.8 % unemployment rate for recent grads — the highest since 2021 — and a staggering 41.2 % underemployment.

AI Enters: The Silent Replacement

There’s evidence AI is already stepping in to take over crucial tasks. Microsoft CEO Satya Nadella said AI contributes around 30 % of the company’s code, and Meta’s Mark Zuckerberg suggested mid-level coders might no longer be needed by the end of 2025. News organisations are also adjusting. Business Insider recently cut staff by 20 %, repositioning itself as “AI‑first.”

This reflects a growing trend: companies are pausing hiring, waiting for AI to perform at the level of a full-time employee. Young professionals in fields like journalism—where the entry role often involves summarising and writing—are already feeling the squeeze.

A Bifurcated Future: Adapt or Fade

AI won’t kill all jobs forever. Industry and academic research suggests we could see a shift rather than a collapse:

The International Monetary Fund and Tony Blair Institute highlight that roughly 60 % of jobs in advanced economies are AI‑exposed, with up to 50 % negatively affected.
Certain job types remain resilient: roles requiring creativity, emotional intelligence, and complex reasoning tend to be future‑proof, including healthcare, teaching, and creative professions.
A growing number of AI roles require no PhD: think AI trainer, creative director, personality engineer, or product manager—highlighting the value of interdisciplinary skills.

How to Upskill for the AI Job Market

If you’re just entering the workforce or stuck in a role that feels threatened, here’s how to level up fast:

1. Get AI-fluent, not AI-obsessed.
Learn to use tools like:

ChatGPT or Claude for content generation
GitHub Copilot for coding support
Perplexity for research and summarisation
You don’t need to be a developer, but knowing how these tools work helps you stay valuable.

2. Build soft skills AI struggles with:

Empathy
Critical thinking
Creative storytelling
Problem framing and reframing

3. Explore short-form credentials:

Google’s AI for Everyone
DeepLearning.AI’s Prompt Engineering courses
Replit’s AI dev track for no-coders

4. Volunteer or freelance in AI-assisted roles:
Get practical exposure with small projects. Even helping a small business automate their customer support chatbot shows initiative.

What Is a “Prompt Writer” or “Personality Engineer”?

These might sound like sci-fi jobs, but they’re real and growing fast.

Prompt Writer

Designs text inputs for AI tools to generate specific, useful results
Used in marketing, customer support, education, and research
Must understand user intent, tone, formatting, and tool quirks
Example: writing 30 prompt templates that generate weekly newsletters or ad copy

AI Personality Engineer

Defines how an AI assistant “speaks,” “thinks,” and responds
Often works with brand strategists, designers, and linguists
Required in industries building chatbots, educational tutors, or AI companions
Example: training an AI to behave like a friendly museum guide for kids

Other AI-related jobs you don’t need a PhD for:

AI UX researcher
Data labeler (now evolving into data coach or context analyst)
Content QA for AI-generated outputs
AI customer service trainer

These roles blend technical curiosity with communication and problem-solving. In other words, ideal for people who’ve just left university or are switching careers.

Real‑World Examples

Business Insider: cut entry‑level roles and pivoted to AI‑first content creation
Education sector: hiring teachers to help fine-tune AI tutoring systems
Tech companies: expanding roles in AI program strategy, UX, and ethics

Final Word

Yes, entry-level white-collar jobs are under threat. But this isn’t a cliff edge. It’s a crossroad. Graduates willing to adapt can pivot into emerging roles powered by AI rather than erased by it. To thrive: