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Despite continued growth in the U.S. economy, unemployment among recent college graduates has climbed to 5.6%, according to Fortune—close to a decade-high level outside the unusual pandemic period. Business leaders increasingly warn that the rise of artificial intelligence (AI) could reduce the number of entry-level roles available to new graduates, creating a squeeze on early-career hiring.
Fortune reports that global executives are issuing cautious forecasts about the near-term job market for young entrants. Dario Amodei, CEO of Anthropic, and Jim Farley, CEO of Ford, have warned that AI may eliminate many entry-level positions—the first step for many graduates entering professional work.
Against that backdrop, IBM is taking a markedly different approach. Nickle LaMoreaux, IBM’s Chief Human Resources Officer, said the company will not shrink its intake of new hires; instead, it plans to triple its new-hire intake in 2025, including roles such as software developers.
LaMoreaux said: “The most successful companies in the next 3 to 5 years will be those that invest heavily in entry-level recruiting right now.”
IBM’s strategy is framed as a response to automation pressures rather than a denial of them. LaMoreaux acknowledges that AI can automate many repetitive tasks in entry-level roles. However, IBM’s approach is to rewrite job descriptions so AI functions as a colleague rather than a competitor.
In engineering, a newly hired software engineer would spend less time on routine coding and more time on direct customer engagement with AI assistance. In HR, young employees would not answer policy questions manually; instead, they would supervise and tune smart chatbots to ensure human-machine interactions meet required accuracy.
A Korn Ferry report cited by Fortune indicates that up to 37% of organizations plan to use AI to replace entry-level roles to optimize short-term finances. LaMoreaux warns that this can create a long-term talent gap.
She argues that if companies reduce hiring at the bottom of the workforce pyramid, they may later lack mid-level leaders who understand company culture and internal processes. That could force firms to recruit externally at higher cost, with external hires often taking longer to adapt—potentially disrupting productivity.
LaMoreaux’s message is direct: “Hiring at entry-level is a business imperative for survival. Do it now, because AI will make your work easier in three years.”
Fortune also highlights similar bets on younger workers among other large employers. Dropbox’s Chief HR Officer, Melanie Rosenwasser, said Gen Z enters the workplace with AI capabilities stronger than older peers, comparing Gen Z to professional racers while earlier generations are still adjusting. To capitalize on this, Dropbox expanded internship and new graduate recruitment by 25%.
At Cognizant, CEO Ravi Kumar S. said AI can amplify new graduates’ ability to perform tasks that previously required many years of experience. He expects the traditional staffing pyramid to flatten at the bottom while broadening at the base, with tools shortening the path to becoming an expert.
LinkedIn data cited by Fortune shows that “AI literacy” has become the fastest-growing skill in the U.S., reflecting a shift in what matters for employability. The report suggests that degrees are no longer the sole differentiator; the ability to collaborate with algorithmic tools is increasingly central.
Fortune notes that forecasts through 2026 indicate the labor market will remain challenging for young applicants. Still, it argues that young people who proactively master AI tools may keep opportunities open at companies such as IBM, Dropbox, and Cognizant.
The core framing in the article is that the competition is not simply between humans and machines for jobs, but between companies pursuing long-term workforce development and those focused on short-term cost cutting. The leadership question, Fortune concludes, is how to prepare the next generation to maximize AI’s value effectively.
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