AI Shrinks Job Opportunities for New Graduates, Fresh Grads Anxious

Artificial intelligence (AI) is increasingly being utilised across various job sectors. From administration and customer service to creative work, many tasks previously performed by humans are now gradually being assisted or even replaced by AI technology.

For young people, particularly new graduates seeking their first job, this situation presents a new challenge. The job market is becoming more competitive as companies begin to curb the recruitment of new employees for efficiency reasons.

This issue has also caught the attention of former UK Prime Minister Rishi Sunak, who believes AI is already causing entry-level job vacancies to diminish. According to him, the concerns of fresh graduates about their career futures are well-founded.

He stated that many company leaders privately admit that hiring young workers is slowing down because companies are now more reliant on AI. ‘There is reason to worry and think about the future,’ he said, as quoted from BBC on Thursday, 23 April 2026.

This phenomenon is most evident in the services sector, such as law, accounting, and the creative industry, which have traditionally been primary destinations for many new graduates. Companies are now seen as able to continue growing without needing to add many employees.

Sunak, who is now an advisor to AI companies Anthropic and Microsoft, mentioned that CEOs are even starting to use the term ‘flat is the new up’. This means businesses continue to grow, but the number of employees does not increase significantly.

‘They talk about the concept that they think they can continue to develop their business without having to significantly increase the number of workers because they are starting to see how they can leverage AI.’

Many companies are now more selective in opening job vacancies, especially for junior positions. On the other hand, the ability to use AI is beginning to become an added value when applying for jobs. Therefore, new graduates are not only required to have a degree or internship experience but must also quickly adapt to technological developments.

Sunak believes that AI should be used to help humans work better, not entirely to replace them. ‘We must think about how to balance so that AI is used in a positive way… to help people do their jobs better, not replace them.’