Artificial intelligence is reshaping the entry-level job market, with experts warning that college graduates may face a ‘broken’ career ladder. Recent advances in AI chatbots like ChatGPT have heightened concerns about the impact on white-collar professions. Some experts predict that technology could cut U.S. entry-level jobs by half within five years.
Companies are already implementing AI-driven changes to streamline operations and reduce costs. Business Insider, for instance, laid off 21% of its staff to adopt an “all-in” approach on AI, aiming to scale and operate more efficiently. Analysts point out that AI can replace or reorient entry-level jobs in fields such as computer programming and law.
However, not all experts agree that the career ladder is being broken. Lynn Wu, a professor at the University of Pennsylvania, notes that young workers are well-positioned to adapt to AI-driven changes, citing examples like early-education teachers and home health aides, which require high levels of human interaction.
Experts warn, however, that certain tasks will continue to be performed by humans, such as manual labor and trades. The job market for recent college graduates “deteriorated noticeably” in 2025, with an unemployment rate reaching 5.8% and underemployment soaring above 40%, according to the New York Federal Reserve.
Analysts stress that while AI may replace some entry-level positions, it will also create new job opportunities that require workers to use AI tools effectively. The required set of skills for these roles will likely include problem-solving, analysis, and critical thinking. As Anu Madgavkar, head of labor market research at the McKinsey Global Institute, puts it: “It’s not surprising we’re seeing this unemployment among young people… There is a lot of economic uncertainty.”
Source: https://abcnews.go.com/Business/ai-risks-broken-career-ladder-college-graduates-experts/story?id=122527744