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Generative AI Drives Over 10,000 Entry-Level Cuts and 15% Drop in Junior Job Postings

Generative AI has eliminated thousands of entry-level positions, fueling debate over its wider economic implications

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Layoffs are surging in the U.S., and some are pointing to AI as the culprit.
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Overview

  • Over 10,000 U.S. positions have been cut in 2025 as a direct result of generative AI adoption, ranking the technology among the top drivers of workforce reductions this year.
  • Entry-level job postings dropped 15% year over year while references to “AI” in job descriptions surged 400%, signalling automation of routine junior-level tasks.
  • Unemployment among recent graduates has climbed to nearly 6%, and tech workers aged 20 to 30 have seen their jobless rate rise by around three percentage points since January.
  • The technology sector recorded over 89,000 layoffs in 2025, with more than 27,000 roles eliminated as companies deploy AI agents to perform tasks once handled by junior staff.
  • Experts warn that prolonged entry-level hiring freezes could erode future leadership pipelines and urge firms to invest in strategic retraining and talent development.