Entry-level jobs shrinking in Canada: report

Entry-level jobs in Canada are becoming harder to access, a trend that could undermine employers’ future talent pipelines and succession plans, according to a new white paper.

More than four in five hiring managers (81%) say entry-level jobs now require candidates to possess more skills than in the past, and 82% of job seekers agree, according to a survey released by Express Employment Professionals.

This trend is “compressing the first rung in the labour market and weakening the foundation of future talent pipelines” for Canadian businesses, according to the report.

Three in 10 (30%) HR leaders in the U.S. say their talent acquisition strategy is shifting towards hiring fewer entry‑level workers in favour of mid‑level employees using AI to complete what were previously junior tasks.  

Rising skill demands, fewer ‘true’ entry-level jobs

The Express white paper says that while entry-level work is not disappearing, the availability and accessibility of true entry-level roles have changed significantly. Positions traditionally designed for candidates with zero to two years of experience now increasingly expect new hires to arrive “work-ready” with strong technical and soft skills.

Express notes that office jobs that once focused on basic tasks such as data entry or scheduling now rely on automation for much of that work. In these roles, entry-level workers are more likely to be expected to manage systems, solve problems and communicate clearly with co-workers or customers from day one.

The report suggests that “entry-level” in title no longer always means entry-level in practice, raising the bar for first-time applicants and altering how organisations structure onboarding and on-the-job learning.

Automation, AI and the changing nature of starter work

Automation and artificial intelligence (AI) are further reshaping early-career work. Half of hiring managers (49%) say implementing AI could allow them to reduce workforce size, while close to half (45%) say it is more efficient to use AI for entry-level tasks than to hire and train a candidate.

According to Express, this growing reliance on technology for routine tasks can deliver short-term efficiency gains but may also remove the lower-risk duties that traditionally helped new hires learn the business and build confidence.

The white paper frames the issue as one of job design rather than resistance to technology, highlighting decisions about which tasks remain with junior staff and which are automated as central to the development of future internal talent.

The software developer role is the position that is most likely at risk of disappearing because of artificial intelligence tools, according to a previous report.

Longer-term labour market risks

The Express report says recent university graduates faced worsening conditions in 2025, with unemployment at 10.6% – the highest level in 30 years outside of the Covid‑19 pandemic.

Express warns that “when early-career opportunities narrow, job seekers struggle to gain traction, employers risk weakening future talent and leadership pipelines and communities can face lasting economic consequences.”

“If the first rung continues to erode, the entire career ladder becomes harder to climb,” the white paper states, linking constrained entry-level hiring today to potential shortages of experienced and leadership-ready workers in the future.

Employers urged to modernize entry-level work

Bob Funk Jr., CEO, President and Chairman of Express Employment International, said employers and employees need to pay attention to the pace of change. “Entry-level work is evolving, and employees and employers need to be aware of the rapid shift so they are not left behind,” he said.

“It is right to sound the alarm that we are in a world of dramatic change, but fears that entry-level work will disappear entirely are misguided,” Funk added. “From our perspective, the challenge before us is twofold: job seekers need to reset their expectations and employers need to remember how critical entry-level work is – both to their success and the economy’s success.”

Express positions entry-level jobs as a critical component of organisational and economic health, rather than a dispensable category of work.

Recommended actions for HR and employers

Drawing on survey data and insights from Express franchise owners across Canada, the white paper outlines several steps organisations can take to “protect and modernise entry-level opportunities”.

Recommendations include preserving roles that are genuinely entry-level, with requirements appropriate to zero to two years of experience, and aligning job requirements with the actual training and supervision offered once employees are hired.

The report also calls for maintaining early-career learning opportunities even as routine tasks are automated, and for expanding internships, short-term roles and varied assignments that build foundational skills and provide clearer routes into permanent employment. Express says these measures are needed to ensure entry-level work continues to support both business performance and the development of Canada’s future workforce.

Here are some numbers around the anticipated count of young graduates vs. available jobs in Canada in the coming years, according to data from Employment and Social Development Canada’s (ESDC) Canadian Occupational Projection System (COPS) — the federal government’s official 10-year labour-market forecast — alongside think-tank and bank-economist commentary on current conditions: