30-07-2025
Why New Grads Still Matter In An AI-Driven Job Market
Michael McFall is the cofounder and co-CEO of BIGGBY COFFEE as well as the author of the Inc. Original books GRIND and GROW.
It's graduation season. Amid the (often very) long ceremonies, countless open houses and farewell parties, recent grads are probably noticing some unwelcome news: The job market isn't particularly interested in what they have to offer.
As the New York Times' Kevin Roose recently reported, "millions of young people will graduate from college and look for work in industries that have little use for their skills, view them as expensive and expendable, and are rapidly phasing out their jobs in favor of artificial intelligence."
Roose's reporting certainly isn't just speculative. Unemployment for recent college graduates approaches 6%, meaningfully higher than for the general working population. In his op-ed, LinkedIn's Chief Economic Opportunity Officer, Aneesh Raman, warned that he, too, sees signs that the bottom rung of the career ladder is giving way.
Roose and Raman both blame artificial intelligence for this troubling trend. They may or may not be right. What I think really matters is what this means for burgeoning young professionals and the companies that could be onboarding this cohort of young, relatively inexpensive talent.
Put differently, what do companies lose when they cut young talent out of the equation?
What New Graduates Get Right
There are a few obvious concerns about declining to onboard new graduates.
For one, today's companies may be stacked with mid and upper-level talent that can, at least in theory, replace the work performed by entry-level workers with the help of AI. However, as these more senior and experienced employees inevitably age out or move on, it's unclear who is supposed to take the baton when they're gone.
Additionally, new graduates often bring fresh perspectives and familiarity with the latest technologies and digital tools, which can be invaluable in a rapidly evolving business landscape.
In my opinion, the loss is less measurable and harder to quantify, but even more impactful. Young people bring a cadre of intangibles that keep teams vibrant, dynamic and fun. They are eager, expectant and excited about what's ahead. They have goals and ambitions, and they aren't jaded by the limitations that prevent so many seasoned professionals from reaching their full potential.
Call them soft skills, intangible traits or inherent enthusiasm, but new graduates bring real value to organizations. It would be short-sighted to ignore that. The implications are especially important right now as companies try to remain agile as the world changes around them.
Can We Even Create Cool Stuff Anymore?
News that new graduates are having a hard time finding work arrives just as entire companies, whole teams and many individuals are trying to adapt and change to align with the latest technologies, customer expectations or market conditions.
For example, according to the World Economic Forum, half of employers globally plan to reorient their businesses to take advantage of new opportunities created by AI. How will they do this? More than three-quarters say they plan to upskill their workforce.
Many employees feel the same way. A McKinsey and Company analysis found that 42% of American workers are interested in upskilling in response to technological changes.
This is just one example of change and agility in the workplace, and it's good news. We want a future-ready workforce.
It also doesn't inherently solve one of our most frustrating problems: a lack of innovation or capacity to come up with cool ideas, invent compelling products or deliver novel customer experiences. For this to happen, we need workplaces that are energetic, ambitious and free from pessimism.
In other words, we need workplaces infused with new college graduates: young, innovative individuals who are just launching their professional journeys and ready to contribute to ours in exciting and compelling ways.
What's the takeaway for leaders? Preparing for AI (or any inevitable change) is essential, but we should be careful not to crowd out the compelling culture of recent graduates who can propel agility and cultivate innovation.
The Season To Invest
Graduation season is a celebration, a coronation of a new generation of professionals. If you have the opportunity to attend a ceremony, visit an open house or connect with one of these new graduates, I think you will be reminded of the powerful intangibles they bring to the world.
To be sure, hiring new graduates is an investment. But with so much on the line, it's one that business leaders at every company of every size and in every sector should take seriously, recognizing that the ROI is felt and measurable.
AI may be coming for entry-level tasks. That doesn't mean we can afford to overlook the people who fill those positions, because their impact can't be automated anytime soon.
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