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Entry-Level Hiring in the Era of AI and Experience Bias: Global Trends and Future Skills

General Report July 8, 2025
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  • As of July 8, 2025, the landscape of entry-level hiring has shifted considerably, recognizing a pronounced global trend favoring experienced candidates over new graduates. Employers are increasingly utilizing AI-driven technologies, which not only automate various aspects of recruitment but also raise the competitive stakes for candidates entering the job market. The barriers for entry-level jobseekers have intensified, particularly for new graduates from countries like South Korea, the United States, and the United Kingdom. Reports indicate that in South Korea, over 82% of job postings in early 2025 were exclusive to experienced workers, with distressing implications for a generation that is facing diminished employment opportunities. Similar trends prevail in the US and UK, where high unemployment rates among recent graduates are becoming a chronic issue, further exacerbated by the increasing demands for prior work experience even for positions labeled as entry-level. This evolving dynamics result in a stark scarcity of entry-level positions, prompting urgent responses from educational institutions and policymakers to align curriculums with industry needs and promote vital internship opportunities.

  • Moreover, technological advancements, particularly in artificial intelligence, have drastically altered the nature of available positions. As of now, significant roles that traditionally required graduate-level qualifications are being progressively automated or replaced, particularly within technology-driven sectors. This job displacement underscores a critical need for workforce development strategies centered on upskilling and reskilling to bridge the growing employment gap. Countries like India and Nigeria show distinct approaches to navigating these trends. India's Global Capability Centres are undergoing transformative changes, spearheading AI initiatives while re-evaluating talent acquisition practices to ensure alignment with emerging needs. Conversely, Nigeria is encouraging job seekers to adopt strategic job search techniques, leveraging AI tools and localized platforms to enhance their employability. Collectively, this report illuminates the complexities of the current entry-level hiring ecosystem and sets the stage for a comprehensive examination of future trends in workforce preparation, emphasizing the necessity of lifelong learning and adaptable career pathways.

Entry-Level Hiring Obstacles and Preference for Experienced Candidates

  • South Korea’s experience-focused recruitment barriers

  • In South Korea, recent trends indicate that over half of college graduates perceive the private sector's increasing preference for experienced hires as a significant barrier to entering the job market. A report by the Korea Chamber of Commerce and Industry (KCCI) revealed that 82% of job postings in the first half of 2025 sought experienced workers exclusively, with only 2.6% designated for entry-level candidates. This environment has created a distinct employment gap for young job seekers. The same KCCI survey found that 53.9% of 1, 000 college-educated youth identified 'experience-based hiring' as a primary obstacle in their job searches. The problem is compounded by the lack of practical experiences available during university years, with 53.2% of respondents admitting to graduating without any job-related experience. As the job market evolves, characterized by a shift from open calls to 'semi-experienced' hiring practices, universities and policymakers are urged to revamp curriculums and expand internship opportunities to better prepare students for the professional world.

  • US and UK graduate employment crises

  • In the United States, the job market for recent college graduates has been deteriorating significantly. As of July 2025, the unemployment rate for young, recent graduates has surged to 5.8%, the highest seen since November 2013, excluding periods during the Covid pandemic. This troubling trend is mirrored in the UK, where graduates face similar hiring challenges. According to reports, hiring rates have plummeted by 16% in 2025, and data indicates that the rate of new job openings in professional services has declined over 40% since 2021. The fundamental issue for many job seekers is that entry-level positions are increasingly demanding prior experience, often requiring four to five years for roles that were once deemed entry-level. Analysts attribute this trend not only to the cyclical slowdowns in hiring following the pandemic but also the influence of artificial intelligence in replacing traditional entry-level roles, particularly in sectors like technology and finance.

  • Corporate preference for mid-career talent

  • Corporations today are increasingly favoring mid-career talent over new graduates, exacerbating hiring challenges for entry-level candidates. The landscape of job vacancies has shifted, with many companies opting to fill roles with individuals who possess several years of experience. This preference is evident in sectors where employers previously relied on a steady influx of fresh graduates to nurture future leaders. Observations from various employment reports indicate that firms are tightening requirements and choosing to employ experienced professionals, often overlooking new graduates entirely. As a result, companies have started to implement strategies that prioritize candidates with relevant experience, leaving new entrants struggling to find opportunities. This situation threatens to create a long-term skills gap within industries, as the next generation of workers may lack the practical experience needed to progress into senior roles.

AI-Driven Disruption in Graduate Employment

  • AI robots replacing graduate-level jobs

  • The deployment of artificial intelligence (AI) technologies has reached a critical juncture as of July 2025, making the threat to entry-level positions increasingly palpable. Reports indicate that a significant portion of graduate roles, particularly in sectors like law, accounting, and technology, are being replaced or fundamentally altered by AI capabilities. For instance, AI is now capable of performing tasks such as drafting initial legal documents, managing data entry, or executing algorithmic coding—tasks that were traditionally reserved for entry-level recruits. This shift has been underscored by a 50% reduction in entry-level tech positions, with organizations increasingly opting for AI solutions over human talent, particularly for lowest-tier responsibilities, according to industry analysts. The entry-level job market is now at an unprecedented low, with graduate job postings having fallen steeply over recent years, leading many recent graduates to feel that their educational preparations have become redundant.

  • AI tools reshaping recruitment processes

  • AI technologies are not only affecting job availability but are also revolutionizing recruitment processes. Hiring managers now utilize AI-driven tools to filter resumes, shortlist candidates, and conduct initial assessments—potentially before a human reviewer even sees the application. This technological shift serves to streamline recruitment but simultaneously introduces a layer of complexity for graduates who must now compete not only against their peers but also against algorithms that may prioritize experience or specific skill sets over their potential. The reliance on AI in recruitment is leading to an environment where human error is minimized, yet candidates are confronted with the reality that their applications might be evaluated based on metrics that do not fully encapsulate their potential or competencies.

  • Layoff support and AI upskilling initiatives

  • In response to the encroaching challenges posed by AI, companies are initiating various upskilling initiatives to prepare their workforce for the changing landscape. These measures often include retraining programs focusing on AI fluency and digital literacy, aiming to help current employees transition into roles less susceptible to automation. However, these initiatives frequently neglect to provide a safety net for graduating students, many of whom find themselves at a disadvantage due to the shifting expectations employers have in a rapidly automating world. Voices from recent graduates indicate a pressing need for educational institutions to adapt curricula that equip students with the knowledge necessary to integrate AI into their professional skillset, thereby enhancing their employability in sectors that continue to be redefined by technology.

  • Regulatory challenges around AI overviews

  • As AI technologies proliferate within the job market, regulatory challenges are surfacing regarding their implementation and impact on employment. Recent events highlight how governments and regulatory bodies are beginning to grapple with establishing standards for the use of AI in hiring practices. In Europe, for example, ongoing antitrust discussions concerning major tech companies' AI mechanisms reflect broader concerns about competition and the implications for job markets globally. The call for more robust legislation is becoming critical as stakeholders—from policymakers to educational institutions and industry leaders—recognize the need to create frameworks that promote fairness and transparency in AI applications while safeguarding academic and professional opportunities for new graduates that AI encroaches upon.

Global Regional Insights: India, Nigeria and Pandemic Aftershocks

  • India’s GCC transformation and talent strategies

  • As of July 8, 2025, India's Global Capability Centres (GCCs) are undergoing a significant transformation, emerging not just as support functions but as drivers of innovation and talent management. Recent reports indicate that about 40% of Indian GCCs are now spearheading Artificial Intelligence (AI) initiatives for their global businesses. This reflects a broader shift in the operational role of these centres, which had previously been relegated to back-office functions. The GCC sector has shown robust growth, increasing its workforce from 1.66 million in FY23 to approximately 1.9 million in FY24, with expectations to reach between 2.5 and 2.8 million by 2030. Furthermore, GCC revenues were reported to be around $24.6 billion, marking a 40% increase from the previous fiscal year. The projections project that the sector will grow to a market size of $100-110 billion by 2030.

  • However, this rapid expansion presents complex challenges in talent acquisition and retention. As nearly 2, 000 GCCs vie for the same talent pool as traditional IT services companies, innovative human resources strategies are becoming essential. Employers are discovering that financial incentives alone do not suffice to attract high-caliber talent; candidates now seek meaningful work experiences and an opportunity for growth. Customizing retention strategies to match individual motivations is crucial, especially in a competitive market. For instance, companies that focus on purposeful work and provide a transparent path for career progression are more likely to retain top talent.

  • In this evolving landscape, organizations are increasingly implementing internal gig programs and role-based training to foster continuous learning and employee mobility. Internal training is seen as a key strategy for optimizing the talent pool, particularly in the context of AI integration into business processes. This holistic approach to workforce management is vital for future-proofing the talent needed for India's GCCs.

  • Seven fast-track hiring tips for Nigerian jobseekers

  • In Nigeria, the job market continues to evolve, particularly for recent graduates and industry newcomers who face ongoing challenges in securing employment. As of July 2025, job seekers have access to a wealth of strategies that can significantly enhance their chances of quick employment. Recent insights highlight seven crucial tips that candidates can leverage in the contemporary job market. Firstly, customizing resumes for each job application using AI-powered CV matching tools can dramatically improve visibility in applicant tracking systems, which are currently utilized by over 70% of employers.

  • Secondly, job seekers are encouraged to utilize localized job platforms that provide daily job postings and connect them with potential employers directly. This has become increasingly important as it offers candidates a nimble way to tap into opportunities within their preferred locales, such as Lagos or Port Harcourt. Additionally, features allowing candidates to be discovered by employers without having to apply directly are gaining traction, creating a more fluid job-seeking process.

  • Moreover, staying informed through free resources, such as career webinars and market trend reports, remains imperative for job seekers. Utilizing these insights can bolster a strategic job search by providing clarity on industry demand and salary benchmarks. This aligns closely with the need for applicants to apply smarter rather than harder, focusing on data-driven strategies to connect with employers effectively. Lastly, participation in Africa's broader career tech upsurge is encouraged, with several organizations aiming to connect over 100, 000 young Africans to sustainable jobs by 2030, emphasizing the transformative powers of technology in recruitment.

  • COVID-19’s lasting disruption on African youth careers

  • The COVID-19 pandemic has left indelible marks on the career trajectories of young people across Africa, continuing to affect employment opportunities and educational progress as of July 2025. The pandemic's adverse effects have resulted in a significant disruption of the transition from education to employment, especially for recent graduates who faced condensed job markets and recruitment freezes during the height of the health crisis. As young people sought to enter the workforce, many were met with unexpected barriers, including canceled internships and reduced hiring rates, which led directly to an increased incidence of precarious work and unemployment.

  • The prolonged impact of these disruptions has contributed to what has been termed a 'COVID echo, ' wherein many of those affected continue to struggle with heightened unemployment rates and diminished career prospects. Reports suggest that young graduates experience 'scarring' effects from this period, resulting in long-term challenges related to job security and financial independence as they navigate a more competitive and unforgiving job market. The psychological toll of these unprecedented changes has also been profound, with issues such as anxiety about future employment and disruptions to personal development becoming increasingly prevalent amongst this demographic.

  • As organizations and policymakers look to address these challenges, systemic changes aimed at creating a more resilient youth labor market are crucial. Strategies must encompass tackling the vulnerabilities exposed by the pandemic—enhancing training, bolstering re-skilling initiatives, and reinforcing social safety nets for young job seekers as they endeavor to reclaim their professional paths.

Transition to Skills- and Experience-Based Recruitment

  • Rise of skills-over-degree hiring models

  • The recruitment landscape has dramatically shifted towards prioritizing skills over traditional degree qualifications. As evidenced by recent surveys, a significant percentage of employers now favor practical skills and hands-on experience, a trend highlighted in a June 2025 report which revealed that 80% of Indian employers place greater value on real-world abilities than on academic credentials. This shift reflects a broader global movement recognizing that job performance heavily depends on practical execution rather than formal educational attainment. Organizations are increasingly focused on candidates' ability to demonstrate competencies through project work or specialized training certifications, rather than merely possessing a degree. This evolution in hiring practices is being driven, in part, by advancements in artificial intelligence (AI), which enhances the recruitment process by making it more data-driven. AI tools now enable employers to evaluate skills consistently across large volumes of applicants, effectively reducing biases that may arise from manual screening. The implications of this transition are substantial, as it allows for a more inclusive hiring process, discovering talent from non-traditional backgrounds, such as bootcamp graduates and career switchers, whose skills may be better aligned with organizational needs.

  • Consolidation of security vendors and SASE roles

  • The consolidation of security vendors is emblematic of the increasing sophistication required in today's recruitment strategies, particularly in technology and cybersecurity roles. As organizations face mounting pressures from AI-enhanced threats, the need for streamlined, single-vendor solutions has risen. Cited in a recent article, nearly 75% of companies are pursuing vendor consolidation to simplify their security technology stacks. This trend is not only about reducing complexity but is also a response to the evolving landscape of security needs. Secure Access Service Edge (SASE) platforms represent a pivotal change in how enterprises approach both security and network functions. By merging multiple security capabilities into a single cloud-native solution, SASE facilitates a holistic approach to security, addressing the vulnerabilities posed by fragmented architectures. Security teams are increasingly seeking candidates who possess skills relevant to these integrated roles, emphasizing that the ability to adapt and learn is now paramount in tech-driven environments.

  • Aligning technology choices with workforce capabilities

  • Aligning technology with workforce capabilities is crucial in the shift towards skills- and experience-based recruitment. A strategic focus on leveraging AI for enhancing hiring processes is becoming prevalent among major employers. According to the Society for Human Resource Management, as of early 2024, one in four companies had implemented AI in their HR operations, with a substantial emphasis on talent acquisition. AI facilitates the generation of targeted job descriptions, the customization of recruitment materials, and the evaluation of candidates based on actual competencies rather than degrees. This intelligent alignment between technology use and candidate profiles promotes a more efficient recruitment process. Employers, particularly in sectors such as tech and finance, are increasingly recognizing the importance of hiring individuals who not only understand their technology landscape but can also leverage these tools in practice. This comprehensive strategy not only enhances operational efficiency but also creates a talent pool more suited to meet evolving business demands.

Future Workforce Preparation: Embracing Lifelong Learning

  • Unlocking new skills for work in 2033

  • As we approach 2033, it is clear that the skills landscape will undergo significant transformation. According to research outlined in 'Equipping for Tomorrow: Unlocking New Skills for the Future of Work in 2033', approximately 70% of the skills necessary for success in various job roles are expected to evolve by that year. The focus must shift from traditional hard skills to a greater emphasis on soft skills such as adaptability, empathy, conflict resolution, and resilience. These attributes are becoming increasingly important as employees navigate the complexities of modern workplaces, often driven by technological advancements and shifting market needs. Moreover, the demand for continuous learning is set to rise. Workers will need to develop their ability to learn, unlearn, and relearn, underscoring the importance of creating a mindset geared towards lifelong learning. This shift entails not only acquiring new technical competencies but also honing interpersonal skills that are often more difficult for employers to assess yet are critical for future success.

  • Evolving supply chain education models

  • In the dynamic arena of supply chain management, traditional educational models are rapidly being replaced by more flexible and responsive learning frameworks. Recent discussions highlight that the supply chain landscape changes almost hourly, necessitating continuous adaptation of educational programs. Organizations like ASCM emphasize the importance of developing tailored executive education courses that reflect emerging technologies and geopolitical shifts. These models must foster a 'continuous learning mindset' that extends beyond the classroom, equipping professionals with the analytical tools required to manage complex challenges like digitalization, automation, and global trade fluctuations. The integration of real-world case studies and practical applications is crucial, enabling students to apply their learning in immediate and relevant contexts. Additionally, educational offerings are starting to incorporate modular and online formats to accommodate the busy schedules of professionals. By focusing on short, targeted courses, the goal is to provide quick access to critical skills that can empower the workforce to remain competitive and efficient in a rapidly evolving environment.

  • Nurturing Gen Z leadership pathways

  • As Generation Z begins to enter the workforce in greater numbers, understanding their career aspirations and values is essential for nurturing future leaders. Recent trends indicate a move away from conventional corporate ladders, with many Gen Z professionals seeking autonomy and work-life balance over traditional management roles. This shift underscores the necessity for organizations to rethink their approaches to leadership development. Companies are encouraged to create environments that foster psychological safety, enabling young talents to voice their opinions and contribute meaningfully—without the fear of judgment. To effectively engage and prepare these future leaders, organizations should invest in upskilling initiatives that center on individual growth and foster leadership potential among their staff. Emphasizing a culture that values diverse perspectives and collaborative decision-making will not only resonate with Gen Z’s ideals but will also incentivize them to aspire toward leadership roles. This commitment to adaptability and continuous personal development will be critical as we prepare a new generation of professionals to navigate the complexities of the future workplace.

Wrap Up

  • As the current hiring landscape reveals a growing disconnection between employer expectations and the preparedness of entry-level candidates, the urgency for bridging this gap has never been more apparent. Solutions must involve a multidimensional approach that encompasses the integration of AI-enabled recruitment mechanisms alongside transparent skill assessments. Organizations are urged to prioritize investments in reskilling programs that connect graduates to the skills that are most relevant in a rapidly changing job environment. Furthermore, partnerships between employers and educational institutions would play a crucial role in cultivating a future-ready talent workforce, effectively aligning educational outcomes with industry needs.

  • Policymakers and industry leaders must take proactive steps to champion lifelong learning initiatives that not only support ongoing professional development but also address the barriers faced by entry-level job seekers. Embracing inclusive hiring practices will foster a diverse talent pool capable of driving innovation in the evolving landscape shaped by AI and automation. As we anticipate the job market of 2033, it becomes evident that nurturing a culture focused on adaptability, continuous personal development, and skills acquisition will be integral to equipping a generation of graduates ready to thrive in their careers. The commitment to evolving educational frameworks, along with the strategic embrace of technology, will pave the way for substantial progress in bridging the gaps currently challenging the workforce.

Glossary

  • Entry-Level Hiring: Refers to recruitment practices aimed at hiring individuals with little to no prior work experience, typically recent graduates entering the job market. As of July 2025, this segment faces significant challenges due to a preference for experienced candidates in many sectors.
  • AI Disruption: The impact of artificial intelligence technologies on job markets and hiring practices. As of July 2025, AI is increasingly automating roles traditionally filled by entry-level workers, leading to job displacement and altered recruitment processes.
  • Skill-Based Hiring: A recruitment approach prioritizing candidates' specific skills and practical experience over formal qualifications such as degree certificates. This trend has gained traction as employers seek more applicable competencies in a rapidly evolving job landscape.
  • Global Capability Centres (GCC): Organizations in countries like India that provide support services for global businesses, increasingly transforming into innovation and talent management hubs. By July 2025, around 40% of Indian GCCs are engaged in AI initiatives, highlighting their evolving role.
  • Experience Bias: A tendency among employers to favor candidates with prior work experience, making it challenging for new graduates to secure entry-level positions. This bias is currently observed as a major barrier in several job markets worldwide.
  • Graduate Crisis: The significant difficulty recent graduates face in finding employment, exacerbated by factors like rising unemployment rates and employer demands for prior work experience. This crisis is particularly acute in regions like the US, UK, and South Korea as of July 2025.
  • AI-Driven Recruitment: The use of artificial intelligence technologies in hiring processes to streamline candidate screening and selection. As of July 2025, this includes automating resume filtering and initial assessments, raising concerns about fairness and transparency.
  • Lifelong Learning: An ongoing pursuit of knowledge and skills throughout an individual's life. As the workforce evolves, lifelong learning is becoming essential for adaptability and career progression, particularly in response to technological changes by the year 2033.
  • COVID Echo: The lingering effects of the COVID-19 pandemic on the job market, particularly for young graduates. As of July 2025, many individuals are experiencing longer-term challenges related to unemployment and career disruptions due to the pandemic's impact.
  • SASE (Secure Access Service Edge): A network architecture that combines security functions with wide-area networking capabilities. This model is gaining traction as organizations seek to streamline their security measures, necessitating professionals who can manage these integrative roles effectively.

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