New Delhi [India], July 1 : Companies should continue hiring fresh graduates even as they adopt artificial intelligence (AI), the World Economic Forum (WEF) said in a new report, warning that reducing entry-level recruitment could weaken the talent pipeline businesses rely on for future growth and leadership.
The WEF's latest insight report, "Artificial Intelligence and the Future of Entry-Level Work: A Framework for Safeguarding and Reinventing Early Career Pathways", said AI is reshaping the nature of entry-level work, but argued that organizations should redesign these roles instead of eliminating them.
The report noted that "current hiring slowdowns at entry-level are evident" but added that "AI's role remains contested," pointing out that while hiring has weakened more in occupations with higher AI exposure, broader economic factors are also contributing to the slowdown.
It urged companies to make "entry-level hiring an explicit component of strategic workforce planning, with clear targets to maintain or grow intake alongside AI adoption," warning that failing to do so could unintentionally reduce access to early career opportunities.
The report also cautioned that cutting entry-level hiring today could create long-term capability gaps for businesses.
"Entry-level roles remain a deliberate part of workforce planning, contributing to both organizational productivity and long-term capability planning," it said while outlining its framework for businesses adopting AI.
The report further observed that skill requirements for entry-level roles are changing rapidly. It said entry-level jobs with the highest AI exposure are witnessing nearly twice the rate of skills change compared with non-entry-level roles, while 28 per cent of entry-level workers believe that half or fewer of their current skills will remain relevant within the next three years.
However, even as AI reshapes traditional white-collar career pathways, the report pointed to a notable shift in the labour market -- more young people are turning towards blue-collar and skilled trade jobs.
It cited recent US research showing that 42 per cent of GenZ workers are either employed in or pursuing blue-collar and skilled trade jobs, including 37 per cent of those holding bachelor's degrees. US payroll data also showed that the share of blue-collar employment among workers aged 20-24 has increased by around 2.3 percentage points since 2019.
According to WEF, these trends indicate that traditional pathways into white-collar employment are becoming more fragmented as AI reshapes the workplace, making it increasingly important for companies, educators and policymakers to work together to preserve meaningful entry-level opportunities while preparing workers for an AI-enabled future.