Thursday, October 23, 2025
spot_img

Unemployment Among Graduates Rises as AI Impacts

spot_img
- Advertisement -

Artificial Intelligence (AI) is rapidly transforming the job market, with entry-level white-collar roles facing the most disruption, according to a recent report by Jefferies.

The study highlights that unemployment among recent college graduates in the U.S. has climbed to 5.8%, significantly higher than the national average of 4% and more than double the 2.7% rate for all college graduates.

Jefferies predicts that artificial intelligence’s most significant impact will be labor disruption, particularly in entry-level positions.

Industry experts, including Dario Amodei, CEO of AI firm Anthropic, warn that AI could replace up to 50% of entry-level white-collar jobs within the next one to five years.

If this trend continues unchecked, unemployment could surge to 10-20%, posing a major challenge for young professionals entering the workforce.

Entry-Level Jobs at Risk Due to AI

The report identifies several industries where junior employees are most vulnerable to AI-driven automation:

  • Sales and Customer Support: AI-powered chatbots and automated sales tools are replacing human representatives.
  • Software Development: AI-assisted coding tools are reducing the need for junior programmers.
  • Marketing: AI-driven content creation and analytics platforms are automating many entry-level marketing tasks.

Even technical degrees no longer guarantee job security, as unemployment among Computer Engineering and Computer Science graduates has risen to 7.5% and 6.1%, respectively.

AI Adoption Beyond Tech Companies

AI’s influence is no longer confined to the technology sector. Jefferies found that 40% of the 419 U.S. companies discussing artificial intelligence in their earnings calls since 2021 were from non-tech industries, including retail, finance, and healthcare.

This widespread adoption suggests that AI-driven job displacement will impact a broad range of industries, not just traditional tech roles.

Mixed Industry Reactions

While artificial intelligence is causing job losses in some areas, business leaders have mixed views on its overall impact:

  • IBM CEO Arvind Krishna stated that AI has helped the company invest in new roles, leading to net employment growth.
  • Klarna’s CEO, however, admitted that replacing staff with artificial intelligence led to poorer customer service, forcing the company to consider rehiring human employees.

These contrasting perspectives highlight the complexity of AI’s role in workforce transformation—while it boosts efficiency, it also raises concerns about job displacement and service quality.

Urgent Need for Workforce Reskilling

The Jefferies report calls for immediate action from governments, businesses, and educators to reskill the workforce and prepare young professionals for AI-driven changes.

Without intervention, AI automation could make it even harder for recent graduates to secure stable employment.


Note: We are also on WhatsApp, LinkedIn, Google News, and YouTube, to get the latest news updates. Subscribe to our Channels. WhatsApp– Click HereGoogle News– Click HereYouTube â€“ Click Here, and LinkedIn– Click Here.

spot_img

Editorial

Why TCS Deferred FY25 Salary Hike: Better Hike Ahead?

TCS had initially announced its annual salary hike during...

Deloitte, PWC, EY, KPMG to Hire 1 Lakh People in India in FY25

According to estimates from top company officials and industry...

Higher EPS Pension Application Stuck: A Step-by-Step Guide to Fix

Nearly 97,640 Provident Fund (PF) members and pensioners under...

Employee Benefits at India’s Big 4 Firms Deloitte, PwC , EY, KPMG

The Big 4 firms; Deloitte, PwC (PricewaterhouseCoopers), EY (Ernst...

TCS Announces 4-8% Salary Hike for FY25, Lowest in Last 4 Years

Tata Consultancy Services (TCS), India's largest IT services provider,...

Must Read

Centre has taken these measures for continued development of industry

The Government, as a policy maker, attempts to keep...

5 Ways to Motivate Employees at Workplace

A frustrated people manager who faced the umpteenth instance...

Changing Wellness Landscape and Trends in 2022

Changing Wellness Landscape and Trends in the coming year...

4Ps: How to apply Peer Learning

As businesses try to understand, comprehend and deliver growth...

PepsiCo India is on hiring spree; Apply for Finance, Tech, HR, and more jobs

Recently, PepsiCo announced the setting up of a new...

Hameed Jung is Appointed as CHRO of Shriram Bioseed Genetics

DCM Shriram elevates Hameed Jung as Chief Human Resources...

Mercedes-Benz India elevates Vyankatesh Kulkarni as ED & Head -Ops

Mercedes-Benz India appoints Vyankatesh Kulkarni as Executive Director and...

Related Articles

Sahiba Sharma
Sahiba Sharmahttps://sightsinplus.com/
Sahiba Sharma, Senior Editor - Content at SightsIn Plus