AI is cutting graduate jobs. These are the skills young people will need

AI is reshaping the graduate job market, with many white-collar entry-level positions under threat as artificial intelligence becomes more integrated into workplaces. Young professionals like Noah Ross Grundmann, a 20-year-old finance and compliance officer at a not-for-profit, are preparing for a reality where AI proficiency is essential. He emphasized that students must understand how AI applies to real-world scenarios, focusing on areas such as compliance, data privacy, accuracy, and human accountability. “AI has probably forced universities to think carefully about how they assess learning,” Grundmann said, highlighting the growing pressure on educational institutions to adapt. According to Dario Amodei, CEO of Anthropic, which developed the AI assistant Claude, AI could eliminate up to half of all white-collar entry-level jobs. The World Economic Forum estimates that 39 percent of jobs will undergo fundamental changes by 2030. These predictions are already materializing. In May, law firm MinterEllison reduced its graduate intake from over 100 to just 72, according to reports from The Australian Financial Review. Rachel Banks, MinterEllison’s chief people officer, explained that responsible AI usage has improved efficiency in routine tasks, shifting demand toward more complex responsibilities. As a result, the firm has adopted a more targeted hiring strategy. However, other law firms argue that the reduction in graduate hires reflects broader labor market trends rather than AI alone. Similar shifts are occurring in the accounting sector. PricewaterhouseCoopers has cut entry-level roles by 6 percent and is seeking half of its 2027 graduate intake from non-accounting backgrounds. Deloitte, meanwhile, hired 655 university graduates this year, a decline from 730 in the previous year, while expressing strong interest in candidates with expertise in technology, data, and engineering. Morgan Stanley’s U.S.-based AI disruption tracker noted that although AI has not significantly impacted the overall job market, younger workers face greater challenges. Business trend forecaster Michael McQueen observed that entry-level roles, once a training ground for graduates, are being replaced or restructured as AI handles routine cognitive tasks. “It’s almost as if the first few rungs of the career ladder are being removed in a number of white-collar professions,” he said. The short-term outlook is described as more competitive and uncertain, driven by a cooling labor market, increased reliance on AI for tasks previously performed by junior staff, and skepticism about the value of higher education amid rising tuition costs. McQueen warned that the next 12 to 24 months could bring a tougher transition from academic life to employment, especially for those following traditional career paths. Both students and employers are urging universities to shift focus from regulating AI to equipping students with relevant workplace skills. Anshu Arora, director of customer success at RMIT Online, stressed that AI literacy is becoming a core competency. She explained that teaching students to critically evaluate AI outputs and apply them ethically and strategically is vital. “Young workers are particularly vulnerable,” she added, noting that Gen Z graduates are twice as likely to overstate their AI capabilities compared to Baby Boomers, increasing the risk of misuse if they lack strong critical evaluation skills. Employers, through the Future Skills Organisation, have raised concerns about graduates entering the workforce unprepared. They report that new hires often lack practical skills, AI knowledge, effective communication abilities, and professional judgment. As a result, companies are spending more resources on developing workforce readiness after hiring, diverting funds from early career support. Beyond technical AI skills, McQueen suggested that graduates can differentiate themselves in a challenging market by emphasizing human competencies. However, the path forward remains unclear, with both opportunities and obstacles emerging in the evolving landscape of graduate employment.