26-05-2025
AI is coming for your first job: Hiring of college grads by Big Tech drops 50% since 2022
Young college graduates who are hoping to start a career in tech may find themselves competing with artificial intelligence (AI) for entry-level jobs.
The hiring of new graduates at big tech companies such as Google, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla has declined by more than 50 per cent since 2022, according to a report published by SignalFire, a venture capital firm based in San Francisco, US, on May 20.
In its report titled 'State of Tech Talent: 2025', SignalFire said that entry-level hiring is collapsing as a major shift was underway in the tech industry, one that is leaving new graduates behind.
'The door to tech once swung wide open for new grads. Today, it's barely cracked. The industry's obsession with hiring bright-eyed grads right out of college is colliding with new realities: smaller funding rounds, shrinking teams, fewer new grad programs, and the rise of AI,' the report read.
While job roles across the board were affected in 2023, hiring for mid- and senior-level roles bounced back last year. New graduates, on the other hand, make up just seven per cent of hires by big tech firms, down from 25 per cent in 2023, as per the report.
The new hiring trends in SignalFire's report were identified based on millions of data points gathered and analysed by its AI platform, Beacon, which tracked 650 million professionals and 80 million organisations.
Even startups appear to be scaling back on hiring college graduates. After analysing hiring by companies that have received Series C funding from top venture capital firms in the last four years, SignalFire found that only six per cent of employees at startups are new graduates, down from 11 per cent in 2023.
In 2019, prior to the pandemic, hiring of college graduates by startups was at 30 per cent.
The collapse of entry-level hiring is attributed to tightening budgets and advancements in AI capabilities. The report also pointed to a perception gap, as 55 per cent of employers agreed that Gen Z workers struggle with teamwork. Amid this negative perception, 37 per cent of managers said they would choose AI over a Gen Z hire.
Notably, the report stated that computer science graduates from top universities in the US have also been affected by the hiring slowdown for junior roles at big tech companies.
'As AI tools take over more routine, entry-level tasks, companies are prioritising roles that deliver high-leverage technical output. Big Tech is doubling down on machine learning and data engineering, while non-technical functions like recruiting, product, and sales keep shrinking, making it especially tough for Gen Z and early-career talent to break in,' the report read.
While the report emphasised that AI is not yet upending entire job categories, the findings align with a cautionary message from LinkedIn's chief economic opportunity officer Aneesh Raman. In a New York Times op-ed published on May 25, Raman said that AI could disproportionately affect young workers by eating up jobs that could help launch their careers.
'While the technology sector is feeling the first waves of change, reflecting AI's mass adoption in this field, the erosion of traditional entry-level tasks is expected to play out in fields like finance, travel, food and professional services, too,' he said.
