Entry-level positions are vanishing in fields vulnerable to AI disruption. While new graduates still find openings in industries like real estate, utilities, and construction, the overall hiring landscape remains challenging. Nearly half of recent grads in mid-2026 were either unemployed or working in roles that don’t require a degree. Research from Stanford’s Digital Economy Lab reveals that young workers, especially those aged 22 to 25, are moving away from AI-exposed jobs such as customer service and software engineering, gravitating toward roles involving physical labor and social skills that AI struggles to replicate. Employment in AI-exposed jobs for this age group dropped 19% compared to less AI-exposed roles, which actually saw a 10% increase. This trend is specific to younger workers, with little evidence of job displacement among experienced professionals. Additionally, junior hires in AI-affected jobs must now demonstrate mid-career skills like leadership. These patterns contribute to a growing interest among Gen Z in skilled trades, driven by concerns over job security and rising education costs.
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