Graduates are finding jobs harder to come by. Figures from Indeed, the jobs site, have shown graduate vacancies tracking lower this year – 13 per cent down on the previous year in mid–February and overall youth unemployment has risen sharply, though only a portion of those affected are graduates.
Evidence here and internationally is that many professional service firms have cut their graduate intake and we know from Central Statistics Office (CSO) employment figures that employment in the tech sector is falling – and when a sector is contracting those at the entry level are generally the ones hit hardest.
So what exactly is going on? Just blaming artificial intelligence (AI) for the fall in job numbers seems incorrect – there is clearly a cyclical fall-off too after a big post-Covid expansion. And the longer-term impact of this technology on graduate jobs remains unclear, even if it is obvious that much of the kind of work typically done by this group will be taken on by AI tools.
Employers may be pausing hiring in part to try to work this all out – organisations will still need new hires, even if what they do may be different in future. But how many will they need and what work will they do?
Whatever the mix of reasons, international evidence shows a drop in entry level jobs in AI-affected sectors – by around 16 per cent according to a Stanford University study. A recent report by the Yale Budget Lab discussed which jobs are at risk – and showed a level of disagreement on the topic.
In Ireland the Department of Finance estimates that employment in the most exposed ICT (information and communication technology) sector for younger employees dropped 20 per cent between 2023 and 2025 while job numbers for older employees still rose.
But for those looking for jobs the impact of AI goes beyond the availability of positions. AI is also turning the recruitment process upside down and leading to a new world which can be frustrating and difficult to navigate. So what exactly is going on?
The applications blitz
Up to recently, applying for a job was hard work for graduates. A CV had to be constructed for every position and an application letter to go with it. But AI has changed the game, creating and amending CVs quickly and also allowing jobs boards to be searched and monitored by potential applicants.
For popular positions, application levels have soared. Trayc Keevans, foreign direct investment director at recruiter Morgan McKinley, cites a recent single business analyst role which attracted more than 2,000 applications.
Similar stories come from graduates who have contacted The Irish Times, with stories of thousands of applications for popular internship roles in international businesses and often long delays in finding work for those in Ireland or working internationally.
It is impossible to estimate how much of this application blitz is due specifically to AI and how much to cutbacks in hiring in key sectors and a change in the balance of demand and supply in the market. But clearly AI is a key enabling factor in allowing applicants to search online for jobs and apply for multiple posts across international boundaries with much less effort than in the past.
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This is causing frustration to many graduates who feel that their CV is being lost in the wave of applications for popular positions. And in a jobs market were AI is doing more mundane tasks, the old challenge of not being able to get a job without experience and not being able to get experience without a job is becoming much more acute.
The response of employers
The majority of big employers are now using AI to sort through these higher level of applications – and through the hiring process. According to Keevans, AI is often now used to scan through CVs and order them in terms of the likely suitability of the applicant. Technology can also be used to transcribe interview notes and even as a tool to evaluate recorded interviews.
“The last decision maker is always a human,” she said, but AI tools play an increasing role in the process. Companies like HireVue and Harver offer solutions to large employers.
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As well as screening CVs, the initial phone call to an applicant to see if they are worth an interview – or are interested in a specific role when the details are outlined – may now be replaced by an online engagement with a chabot. Skills tests are often now AI driven. In the US some companies allow chatbots to do the initial interview, or send questions via Whatsapp.
This AI gatekeeping is frustrating unsuccessful job applicants. A US survey reported by Intuition Labs showed that 73 per cent of entry-level jobseekers suspect that an AI filter is responsible when their applications go unanswered.
The same survey reported that only 21 per cent of applicants ever reach a human recruiter. This is also reflected among Irish graduates seeking work, some of whom are frustrated that they can’t get to the interview stage.
A key challenge for employers, and one recognised by legal professionals, is to ensure that the use of AI is fair and does not include biases against any particular groups.
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The graduate challenge
How can jobseekers find their way through the maze? To give themselves the best chance, according to Caroline Reidy of HR consultancy NFP, applicants need to get the balance right – using AI to help them apply but also realising that employers will not respond well to an application which is not tailored to the specific position.
One key is to reflect the exact requirements of the job as closely as possible in the CV. “It has to be as relevant as it can be,” said Reidy. While trying to assist employees being laid off from a client company to find new jobs, Reidy said that it was possible to screen CVs to make them 95 per cent plus relevant to new positions being applied for, compared to 60 per cent or so when the exercise started.
This will give a better chance of getting through the initial AI – or human – screening. An ability to use AI will also, obviously, be to the applicant’s advantage.
“Applicants need to really look closely at the job description and reflect key words in their CVs,” says Keevans. Better processes will always have human oversight, she said, but applicants, particularly those without work experience, need to think about how to give themselves the best chance. Internship experience during college or afterwards can, for example, be vital, she said.
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Experience working in retail or hospitality can give confidence about team-working and interaction skills. The challenge is to mix the advantages of using AI with giving an “authentic” view of the applicant, including skills and interests outside work.
The bottom line
There is no doubt about the AI revolution and its impact on the jobs market. What it will mean for graduates in the years ahead is much debated. Research from Harvard University urges employers to remake positions for junior employees rather than doing away with them, arguing that this is vital for companies as well as society.
“The real opportunity lies in rethinking jobs so humans spend more time where judgment, collaboration, and creativity are needed,” it said, pointing to McKinsey research that for the bulk of jobs AI requires human intervention to do the work.
Reidy argues that the technology can make entry-level jobs more rewarding by removing “grunt work” but concedes that this could mean fewer positions in some areas. The ability of AI in areas like software coding is one example here which is currently leading to some upheaval on the financial markets. Most analysts agree that software development is an area where jobs are seriously at risk.
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On the other side of the coin there is an explosion in demand for AI skills, with many employers replacing more traditional roles in areas like software or data analytics with people who have these skills and show an ability to work with AI. Again, for graduates, lack of jobs experience can be a barrier here.
In the short term, graduates have to do their best to adapt to a changing market. They also have to realise, according to Keevans of Morgan McKinley, that employers are now “more risk averse” with a focus on hiring for business critical roles.
This may in part be cyclical after the post-Covid expansion in many sectors, particularly tech and professional services. But in the short term it adds up to harder work for graduates seeking their first job.