Another uncomfortable truth is emerging in the age of artificial intelligence (AI): for today’s recent college graduates, technological change really may be “different this time”—and not in their favor. While AI promises massive advances and enormous valuations—Anthropic was valued near $170b just six years after founding, and xAI is in talks for $200b—its disruptive impact is felt far beyond Silicon Valley’s boardrooms.

High-Powered AI Growth — and Surging Compensation

There’s no question AI is here to stay. Top leaders in tech are reaping unprecedented rewards, like Apple’s head of AI models reportedly landing a pay package north of $200m at Meta. The world’s business titans are bracing for an “AI tidal wave,” rapidly shifting corporate priorities and talent strategies. But the surge is not lifting all boats. Entry-level talent, especially those newly minted with degrees from prestigious universities, are encountering turbulence the likes of which hasn’t been seen in decades.

Unemployment Trends: College Graduates in Uncharted Waters

Historically, the unemployment rate for recent college graduates in the United States has been lower than for the general population. Yet, for the first time in 45+ years, that relationship has reversed: recent grads now face higher unemployment than the broader workforce. As Oxford Economics’ Matthew Martin notes, “higher educational attainment” no longer guarantees better job prospects. For graduates like Tiffany Lee (Cornell, information science and psychology) and Jacob Ayoub (Boston College, economics and finance), who secured excellent grades and coveted internships, landing a full-time role remains elusive.

Why Are Entry-Level Jobs So Hard to Find?

Graduates are applying for hundreds of jobs—sometimes with little response. In fields like tech and finance, entry-level positions are particularly scarce, with job postings down 21% from pre-pandemic levels, according to Indeed data. Many roles now require 2-3 years of experience even at the supposed entry point, creating a Catch-22 for newcomers.

The reasons are multi-layered:

• The post-pandemic hiring surge has subsided, leading to an overall cooler labor market.
• AI adoption is rapidly accelerating, particularly in tech, where 25% of businesses now regularly use AI, compared to a national average of 5%.
• Sectors traditionally seen as “safe bets” for high-achieving grads—tech, finance, law—are at the forefront of automation and process reengineering.

AI’s impact is direct: Anthropic’s CEO predicts it could “wipe out half of all entry-level white-collar jobs.”

Shifting Opportunities: Who’s at Risk, Who’s Protected

The challenges aren’t distributed evenly. Data reveals men are more likely to struggle: they gravitate toward computer science and tech roles, which face shrinking opportunities. In contrast, women are more often moving into healthcare and education, fields with robust demand (over 40% of female graduates enter these sectors, compared to just 5% of males in healthcare).

What Can Today’s Graduates Do?

The advice from business leaders is clear—stay flexible and build the skills AI cannot easily replace:

• Critical thinking and judgment.
• Broad-based learning in the humanities.
• Interpersonal skills and creative problem-solving.

These “human” attributes are likely to remain in demand, even as AI reshapes the world of work. “Judgment is not going out of style,” says Centerview Partners’ Blair Effron.

Yet, for those in the thick of the search, the long-term promise of AI seems remote in the face of immediate frustration. Many are now weighing costly graduate degrees simply to compete for jobs that once required only a bachelor’s, and questioning whether the system is broken—or whether the rules themselves have changed.

Bottom Line

College graduates did everything right, yet the world shifted underneath them. The AI era is rewriting the rules—fast. Those able to adapt, broaden their skillset, and leverage their uniquely human strengths will be the ones best positioned to ride the next wave, whatever shape it takes. For now, flexibility and resilience are the keys in a workplace transformed by artificial intelligence.

Gen Z, the generation born between the late 1990s and early 2010s, is facing one of the toughest job markets in decades. Despite being told that higher education and digital skills would open doors, millions are finding those doors firmly closed or simply illusions. Here’s a deep dive into what’s driving this unprecedented crisis.

Entry-Level Jobs Are Vanishing

Once, starting a career meant replying to job ads or handing in a resume. Now, Gen Z faces a maze of obstacles. According to recent reports, 75% of employers say they’re struggling to fill vacancies, and yet responses to applications are rare. In a 2022 study, only 12% of more than 300 job applications submitted by interns received any kind of reply, and not one led to a hire—even though these candidates matched job requirements. Strangely, the more qualified the applicant, the more likely employers were to “ghost” them.

A central problem is the rise of “ghost jobs”—fake or inactive listings companies post without any intention to hire. Surveys show that 81% of recruiters admit their organization has posted such listings, some reporting that half their openings are not real. The reasons vary: keeping up the appearance of growth, building databases to sell, scaring employees into higher productivity, or simply making teams believe help is coming. It’s a widespread, institutionalized deception.

Data Exploitation and Global Job Market Manipulation

The issue is international. In Japan, job search giant Rukunabi was caught selling predictive data about candidates directly to employers, affecting entire career paths. Rukunabi’s parent company also owns major platforms such as Indeed and Glassdoor, linking data manipulation from Tokyo to New York. These practices have become normalized; in 2024, online job listings were only half as likely to result in a hire as in 2020.

Ghost postings are now so common that the U.S. Library of Congress officially recognized them as a modern job market threat. Yet, while some state lawmakers have proposed reforms, no federal legislation addresses this systemic problem or the economic forces undermining careers for half a century.

Experience Required—But How to Get It?

Entry-level positions are supposed to be entry points, but that’s no longer true. Surveys show that 94% of employers now require previous experience for these roles (even in tech), and nearly 40% of entry-level listings on platforms like LinkedIn demand 3–5 years of experience1. That leaves internships—often unpaid—as the only path in. But competition is fierce: some firms receive tens of thousands of applications for a handful of internships, and nearly half of all internships are unpaid, locking out anyone lacking financial resources.

Paid interns are much more likely to get job offers, deepening a class divide where only those who can afford to work for free get a real chance to advance.

The Global Reality

It isn’t just an American problem. In Canada, Gen Z unemployment is over 12%—double that of older workers. In China, it’s nearly 16%, with young people dubbed “rat people” to mock their prospects. Meanwhile, AI and automation threaten to wipe out half of all entry-level jobs as soon as five years from now, potentially displacing 45 million U.S. workers by 2030. Yet, corporate investment in job training has collapsed, leaving young workers to sink or swim on their own.

Wages Lag, Costs Soar

For Gen Z, even those who find work must contend with stagnating pay and skyrocketing costs. Since 1970, the U.S. dollar has lost roughly 85% of its value. Wages rose just 29% while productivity jumped 80%. Gen Z carries more personal debt than any previous cohort, with major expenses like rent, health insurance, and car insurance far outstripping any modest gains in income.

Almost half of full-time American workers now make less than what the minimum wage would be if it had kept up with productivity, further exacerbating economic insecurity and resentment.

What Next? A Call for Real Change

Standard advice—network harder, polish your resume, send thank-you notes—rings hollow when the entire system is stacked against newcomers. The root of Gen Z’s crisis is institutional: fake job postings, predatory data practices, impossible standards for “entry-level” roles, collapsing wages, and an economic model that rewards automation over human job creation.

If there is hope, it lies in solidarity, transparency, and honest conversation. Policy must catch up with reality to ensure genuine opportunity: enforce real job listing standards, invest in job training, address the misuse of worker and applicant data, and reimagine economic rewards to support—not punish—each new generation.

Gen Z’s struggle isn’t due to individual failings; it’s the product of a broken, manipulated system. Facing this openly is the first step to creating a better future.

The Shockwave Hits the Office

Artificial intelligence is no longer an abstract threat to the labor force—it’s rapidly destabilizing the white-collar world. Across finance, law, tech, consulting, marketing, HR, and beyond, millions of office jobs are being eliminated right now, not in some distant future. Headlines once filled with the fear of robots in factories now chronicle mass layoffs at software companies, major banks, and Fortune 500 giants. The so-called “white collar bloodbath” has begun, and experts warn the carnage will intensify over the next five years.

The Hard Numbers: How Bad Is It?

• Up to 50% of Entry-Level White Collar Jobs Gone by 2030
  Leaders from Anthropic, Nvidia, and other AI powerhouses now agree: as many as half of all white-collar entry roles could vanish in as little as five years, with unemployment spikes as high as 20% possible if society is unprepared.
• Widespread Layoffs:
  This isn’t a small-scale shift. In 2025 alone:
  • Microsoft cut 6,000 jobs, most in software and corporate operations.
  • IBM shed 8,000 positions from its HR and admin teams—with more to come.
  • Meta and Amazon have quietly trimmed their white-collar staff at every opportunity.

Where the Ax Falls First

Vulnerable Sectors and Roles

• Finance: Analysts, accountants, and even some managers are being replaced by AI that can process thousands of transactions or financial reports in seconds.
• Legal: Junior associates and paralegals face obsolescence from AI document review and contract generation tools.
• Marketing: Copywriting, analytics, and ad optimization are now handled by generative AI models at a fraction of the cost.
• Tech & Consulting: Junior programmers and entry-level consultants have seen demand for their roles plummet as companies deploy AI agents that can code, test, and generate insights 24/7.
• Customer Support & HR: Automated chatbots and AI HR agents are displacing thousands, from contact center representatives to benefits coordinators.

The New Hiring Freeze

Rather than a gradual evolution, the shift is abrupt and relentless. Many corporations are no longer hiring for traditional entry-level positions, and the old “career ladder” is disintegrating. Recent graduates now find themselves locked out of office jobs that were, until recently, reliable stepping stones to higher earnings.

Productivity Up, Opportunity Down

This wave of automation is happening in a time of robust profits for major firms. Productivity and revenue are soaring—yet hiring is grinding to a halt. This is not a recession linked to declining business but to rapid technological supersession. AI systems designed to augment humans are now replacing them, creating a structural shift with unpredictable social effects.

Is There Any Hope for White-Collar Workers?

• Upskilling Alone Isn’t Enough:
  While some suggest retraining for more technical or creative roles, the sheer speed and scope of AI replacement in entry and mid-level positions threaten to outpace any adaptation efforts.

• Rise of the Freelancer or Gig Worker:
  Those not replaced by AI may only find work in contract or gig jobs, often with less stability and benefits than the salaried white-collar roles they’re replacing.
• Pathways to Advancement Are Closing:
  Without entry-level jobs, younger generations may struggle to enter professions like law, accounting, or engineering at all.

What Happens Next?

AI’s encroachment on office work is accelerating, not slowing down. Even top tech executives are warning that society is unprepared for the scale of disruption ahead. Without urgent government action and new frameworks for economic security, the white-collar bloodbath may only be beginning.