'Entry-level jobs are changing, and the skills companies look for are too'
Recruitment for entry-level employees is expected to slow down in the next five years as artificial intelligence reshapes the needs of organisations, according to a new global report from IDC and Deel.
The report, which included respondents in Australia, found that 93% of organisations are anticipating a reduction in the general hiring of entry-level staff in the next one to five years.
More than 68% of the respondents added that they now rate more specific skill sets and certifications, such as AI tools and coding boot camps, when looking for entry-level staff.
"AI is no longer emerging, it's fully here," said Nick Catino, Global Head of Policy at Deel, in a statement.
"It's reshaping how we work and how businesses operate. Entry-level jobs are changing, and the skills companies look for are too. Both workers and businesses need to adapt quickly. This isn't about staying competitive; it's about staying viable."
The findings are in line with recent predictions that AI implementation will wipe out some entry-level roles in organisations.
A previous report from Jobs and Skills Australia also noted that there could be a shift in what entry-level work "looks like" when generative and agentic AI are further implemented at work in the future.
In Australia, eight per cent of employers have already stopped hiring entry-level staff, while 30% have slowed their recruitment.
AI adoption in Australia
It comes as most employers across Australia implement AI in varying stages, where 39% are at the intermediate stage, 21% are at the advanced stage, and 30% are at an early stage.
As a result, 90% of organisations have experienced role changes or displacement, with 28% seeing significant workforce restructuring to integrate AI.
And with the slowdown in hiring for entry-level roles, almost 75% of the respondents said the growing challenge is recruiting and training future leaders.
Another 74% said there are fewer on-the-job development opportunities for junior employees.
Upskilling efforts are also limited by employee engagement in training (69%), budget constraints (56%), and lack of expert trainers (34%).
"Artificial intelligence is reshaping the global workforce at an unprecedented pace, outstripping any recent technological shift," said Chris Marshall, Vice President for AI in Asia Pacific, IDC, in a statement.
"Organisations that will thrive are those that unite automation with a human-centred vision – investing in upskilling, redefining entry-level opportunities, and ensuring that governance and ethics evolve in step with innovation."
