'I don't think this is on people's radar': AI could wipe out half of entry-level jobs in the next five years - and Anthropic CEO Dario Amodei thinks we're all burying our heads in the sand

Graduates entering the workforce are facing significant challenges due to a reduction in hiring trends, exacerbated by the rise of generative AI technology. SignalFire's 2025 report indicates tech companies are increasingly favoring experienced professionals over new graduates amid tightening budgets. This shift is reflected in a 30% increase in unemployment rates for recent graduates since September 2022. The evolving labor market resembles the 1980s manufacturing job decline, suggesting that entry-level positions are becoming increasingly scarce as employers automate roles previously filled by graduates.

"As budgets tighten and AI capabilities increase, companies are reducing their investment in new grad opportunities," the VC firm said.

"Now it is our office workers who are staring down the same kind of technological and economic disruption," he wrote.

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