Artificial Intelligence (AI) is rapidly transforming the job market, with entry-level white-collar roles facing the most disruption, according to a recent report by Jefferies.
The study highlights that unemployment among recent college graduates in the U.S. has climbed to 5.8%, significantly higher than the national average of 4% and more than double the 2.7% rate for all college graduates.
Jefferies predicts that artificial intelligence’s most significant impact will be labor disruption, particularly in entry-level positions.
Industry experts, including Dario Amodei, CEO of AI firm Anthropic, warn that AI could replace up to 50% of entry-level white-collar jobs within the next one to five years.
If this trend continues unchecked, unemployment could surge to 10-20%, posing a major challenge for young professionals entering the workforce.
Entry-Level Jobs at Risk Due to AI
The report identifies several industries where junior employees are most vulnerable to AI-driven automation:
- Sales and Customer Support: AI-powered chatbots and automated sales tools are replacing human representatives.
- Software Development: AI-assisted coding tools are reducing the need for junior programmers.
- Marketing: AI-driven content creation and analytics platforms are automating many entry-level marketing tasks.
Even technical degrees no longer guarantee job security, as unemployment among Computer Engineering and Computer Science graduates has risen to 7.5% and 6.1%, respectively.
AI Adoption Beyond Tech Companies
AI’s influence is no longer confined to the technology sector. Jefferies found that 40% of the 419 U.S. companies discussing artificial intelligence in their earnings calls since 2021 were from non-tech industries, including retail, finance, and healthcare.
This widespread adoption suggests that AI-driven job displacement will impact a broad range of industries, not just traditional tech roles.
Mixed Industry Reactions
While artificial intelligence is causing job losses in some areas, business leaders have mixed views on its overall impact:
- IBM CEO Arvind Krishna stated that AI has helped the company invest in new roles, leading to net employment growth.
- Klarna’s CEO, however, admitted that replacing staff with artificial intelligence led to poorer customer service, forcing the company to consider rehiring human employees.
These contrasting perspectives highlight the complexity of AI’s role in workforce transformation—while it boosts efficiency, it also raises concerns about job displacement and service quality.
Urgent Need for Workforce Reskilling
The Jefferies report calls for immediate action from governments, businesses, and educators to reskill the workforce and prepare young professionals for AI-driven changes.
Without intervention, AI automation could make it even harder for recent graduates to secure stable employment.
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