The Real Problem With Entry-Level Jobs (It’s Not AI)

2 major obstacles for Gen Z

I’ve noted before how every generation seems to feel they have a uniquely tough set of circumstances to navigate. And while a little perspective can help, it’s also true that Gen Zers just entering the workforce are facing early-career headwinds from several different directions.

“Generation Z has a distinct set of frustrations regarding entry-level job postings, primarily centering around unrealistic employer expectations and the shrinking availability of roles due to automation,” says Cotton. “Over half (59%) of Gen Z candidates agree that companies now expect entry-level applicants to already have mid-level experience. Gen Z feels the requirements on these postings remain rigid.”

Gen Z also feels aggrieved when it comes to educational requirements. “Thirty-seven percent believe that a college degree is still required for these roles even when it may not be necessary,” says Cotton. “Additionally, 36% feel that technical and AI-related skills are now valued more highly than soft skills like communication.”

Cotton urges organizations to take a step back and really evaluate what is needed for the role, because not doing so could alienate a large portion of talent. “In our data, Gen Z makes up a little over 40% of the candidate pool so excluding them would be a detriment to future workforce needs.”

Gen Z has ‘significant distrust’ of AI

Though they’re considered ‘digital natives’ who are comfortable with technology in every part of their lives, Gen Z’s feelings toward AI aren’t so clear cut. “Generation Z views artificial intelligence in the job market with significant distrust and anxiety, primarily seeing it as a threat to their early-career opportunities rather than a helpful tool,” notes Cotton.

According to ICIMS’ report, among Gen Z workers:

• 58% agree that companies are hiring fewer entry-level employees specifically because of AI
• 78% agree that companies’ growing use of AI and automated tools is reducing the number of entry-level roles available

“The anxiety surrounding AI is severe enough that it is actively altering Gen Z’s career trajectories,” says Cotton. “Half of all Gen Z candidates are rethinking their professional futures specifically because of artificial intelligence: 35% state they are currently reconsidering their intended career path, and another 15% have already completely changed their career plans due to AI.”

AI in hiring

When it comes to AI being used in the hiring process, Cotton says the prevailing sentiment among Gen Z candidates is skepticism:

• 37% state that they explicitly do not trust AI in the hiring process because it feels ‘too impersonal’
• 21% are concerned that automated tools introduce bias or confusion
• 22% say they are only open to it if a human ultimately makes the final decision
• Only 7% believe AI is actually helpful for speeding up the hiring process

“However, despite their skepticism and anxiety, Gen Z is actively trying to adapt to this new landscape to remain competitive,” says Cotton. “To combat the AI hiring wall, 33% report applying to a broader range of roles or industries, 30% are actively learning new AI skills, and 29% are using AI tools themselves to support their applications and career planning.”

Advice for Gen Z job seekers

Data on entry-level jobs, AI and candidate sentiment is helpful, but at an individual level these are young people trying to find their way in a fast-changing employment landscape. I asked Cotton what ICIMS’ research would mean to a 22-year-old fresh out of college and struggling to land a job.

“If you are a new grad, think in terms of advantage and odds,” he said. “First, close the experience gap by upskilling yourself in AI and related tools, then prove it with real projects or credentials so employers see immediate value.

“Second, stop aiming only at overcrowded corporate roles and look at high-demand frontline sectors like manufacturing or hospitality where openings are up and applications are down. You can build skills, move up faster, and use that early momentum as a launchpad for whatever you want to do next.”

I would echo that the career you choose today isn’t a forever choice. Further, the soft/professional skills you cultivate today will stand you in good stead in any industry and role. They are, after all, the skills that make you human and that AI can never truly produce.

AI can’t replace people

Gen Z job seekers may find that a job market tilting against them may soon come back in their favor. “My gut tells me it is a shoot, fire, ready, aim approach to AI,” says Cotton. “Companies are banking on AI increasing efficiencies while driving down costs. This, in theory, is the true value of AI but in a Forbes article on the topic, it points out that MIT found 95% of enterprise AI fails.”

Cotton believes that, based on recent data, we will see some entry-level jobs return to the market after this correction. “Early indicators like IBM doubling down on hiring more of these types of roles is an early signal for what I believe to come in the near future,” he says.

A strategic plan for entry-level work

In the rush to capitalize on AI, Cotton argues that organizations should evaluate value creation at the employee level. “Rather than simply making rash decisions to cut a role, the smarter organizations will work to identify what in their value creation chain should be uniquely human, automated or augmented with AI,” he says.

Organizations that fail to do this will create their own talent shortage, as I’ve written about before. “Those early-career roles are where people learn the business, absorb execution work, and build the judgment you need in the middle,” says Cotton. “When you pull that rung out of the ladder, you hollow out your leadership bench but call it “saving money’.”

Entry-level jobs should never have been defined only by ‘grunt work,’ and today the need to redesign these roles is more imperative than ever. If your talent strategy doesn’t include an internal pipeline of entry-level workers, now is the time to change that.