ANN ARBOR  — Entry-level jobs — long the gateway from college to career — are rapidly disappearing as companies use artificial intelligence to automate the very tasks that once trained new workers, according to new research from the Burning Glass Institute.

The nonprofit workforce research group analyzed millions of job postings and found a sharp decline in junior-level hiring across white-collar fields most exposed to AI. While companies continue to hire, they are increasingly skipping recent graduates and favoring experienced workers who can contribute immediately.

MyPerfectResume®, a resume-building and career services company, highlighted the findings to raise awareness among job seekers and employers navigating a changing labor market.

Entry-Level Hiring Drops Sharply in AI-Exposed Fields

BGI’s No Country for Young Grads report shows that roles once considered launchpads for college graduates are vanishing, even as overall hiring remains strong.

Between 2018 and 2024:

  • Software development jobs requiring three years of experience or less fell from 43% to 28%

  • Data analysis entry-level roles dropped from 35% to 22%

  • Consulting entry-level positions declined from 41% to 26%

Senior-level hiring in these same fields held steady, signaling that companies are not shrinking — they are simply raising the bar.

“Hiring hasn’t slowed,” the report notes. “The pathway into the workforce has.”

Companies Are Skipping the Bottom Rung

The data show that employers are no longer using entry-level roles to train workers. Instead, they expect candidates to arrive job-ready.

Positions such as financial analyst, marketing coordinator, junior consultant, and project manager — once considered standard early-career roles — now increasingly require multiple years of experience.

“Employers used to hire potential,” said Jasmine Escalera, a career expert at MyPerfectResume. “Now they hire productivity.”

AI Has Replaced the Ramp-Up Period

BGI researchers say generative AI tools have fundamentally altered how companies view early-career talent.

Tasks that once taught new hires how to think critically — drafting reports, conducting research, building forecasts, and summarizing data — are now handled by tools like ChatGPT, Copilot, and proprietary AI systems.

“AI is performing the exact tasks that helped new grads grow into experts,” Escalera said. “Now that AI does that groundwork, employers are skipping the bottom rung entirely.”

As a result, companies are flattening organizational charts and prioritizing “plug-and-play” professionals who require little training.

A Growing Crisis for Young Graduates

The disappearance of entry-level roles has hit young, college-educated workers hardest.

BGI found that:

  • Unemployment among 20–24-year-olds with bachelor’s degrees rose from 5.2% in 2018–19 to 6.2% today

  • College graduates now face higher unemployment than workers with associate degrees

  • Layoffs among young graduates have doubled

  • 52% of the Class of 2023 are underemployed, working in jobs that do not require a degree

Economists warn this trend could have long-term consequences.

“When young workers can’t get early career traction, earnings losses compound for years,” said one labor economist familiar with the research. “This isn’t just a short-term hiring hiccup — it reshapes lifetime outcomes.”

Other Forces Making Entry-Level Jobs Harder to Find

AI is not the only factor squeezing young workers. Workforce experts point to several structural changes:

Lean Corporate Models
Companies learned during the pandemic how to grow revenue without growing headcount. Many never returned to traditional staffing models.

Post–Great Resignation Risk Aversion
After years of high turnover, employers increasingly favor mid-career hires who require less onboarding and are seen as less likely to leave.

Credential Inflation
Jobs that once required a degree now demand years of experience, certifications, or specialized tools — raising barriers without increasing pay.

A Growing Graduate Glut
By 2034, the U.S. is projected to have nearly 10 million more college-educated workers than jobs that require a degree, intensifying competition for fewer entry points.

“Degrees are no longer scarce,” said one workforce strategist. “Experience is.”

Why It Matters

The U.S. economy has long relied on a steady pipeline of educated workers moving from classrooms into careers. As that pipeline breaks down, the report warns of lasting damage — not only to individuals, but to innovation, productivity, and economic mobility.

“If companies stop investing in early-career talent,” the report concludes, “they risk hollowing out their future leadership and expertise.”

What Comes Next

BGI researchers say solving the problem will require more than resume tweaks. They point to paid apprenticeships, AI-assisted training roles, and new hybrid positions that combine human judgment with AI tools as potential paths forward.

For now, however, the message to new graduates is stark: the old entry-level job no longer exists — and the path into the workforce is being rewritten in real time.

Michigan Workforce Impact: Degrees, AI, and a Shrinking On-Ramp

Michigan’s job market reflects the national decline in entry-level hiring — but with added pressure from the state’s evolving industrial mix.

Michigan continues to produce tens of thousands of college graduates each year from institutions such as the University of Michigan, Michigan State University, Wayne State University, and a network of regional universities. At the same time, many of the state’s fastest-growing employers — in automotive technology, mobility software, advanced manufacturing, finance, and professional services — are among the sectors most affected by AI-driven changes in hiring.

Workforce analysts say Michigan employers are increasingly seeking candidates who can contribute immediately in hybrid environments that combine domain expertise with AI tools.

“Michigan companies are hiring — but they’re hiring differently,” said one Detroit-area workforce development executive. “They want people who already understand the industry and know how to work alongside AI systems. That’s a tough ask for new grads.”

Auto and Manufacturing Tech Raise the Bar

Michigan’s transition from traditional auto manufacturing to software-defined vehicles, electrification, and Industry 4.0 has reshaped early-career expectations.

Automakers and suppliers now expect entry-level engineers, analysts, and project managers to arrive with:

  • Hands-on experience using AI-assisted design and analytics tools

  • Familiarity with digital manufacturing systems

  • Exposure to real-world projects, not just classroom theory

That shift has reduced the number of true “learn-on-the-job” roles that once brought graduates into the industry.

Tech and Professional Services Follow the Same Pattern

In Michigan’s growing tech and professional services sectors — including cybersecurity, fintech, marketing, and consulting — companies report similar trends.

Firms that once hired junior analysts and coordinators now rely on AI for research, reporting, and drafting. Entry-level roles increasingly demand two to five years of experience, even when pay has not risen proportionally.

“The first rung of the ladder is missing,” said a Lansing-based career advisor. “Graduates aren’t unqualified — they’re under-opportunitized.”

Consequences for Michigan’s Talent Pipeline

State workforce officials warn that if early-career pathways continue to narrow, Michigan risks:

  • Losing young talent to other states or industries

  • Undermining long-term leadership development

  • Weakening its competitiveness in advanced manufacturing and mobility

The problem is especially acute outside major metro areas, where fewer employers can offer internships, apprenticeships, or rotational programs that bridge school and work.

What Michigan Employers Are Experimenting With

Some Michigan companies are beginning to respond by:

  • Expanding paid internships and co-op programs

  • Partnering with universities on AI-enabled apprenticeships

  • Creating hybrid roles that pair junior employees with AI tools rather than replacing them

Workforce leaders say those models could help restore the on-ramp — but only if adopted at scale.

Michigan Takeaway

For Michigan graduates, the challenge is not a lack of education, but a lack of structured entry points into AI-shaped careers. And for employers, the risk is clear: skipping entry-level hiring today may leave the state short on experienced leaders tomorrow.

As one workforce expert put it, “You can automate tasks — but you can’t automate the next generation of expertise.”