The contemporary job market presents a daunting landscape for new graduates, facing what some experts are calling the "job apocalypse". This crisis, fueled by a perfect storm of AI, political instability, and economic uncertainty, is making this one of the most challenging periods in history for graduates seeking employment. Contributing to the conversation about the future of work is Isabel Berwick, who leads the Financial Times' Working It column, where she speaks, presents, and writes about management, leadership, and workplaces. Berwick highlights the severity of the situation: job openings for graduates are at an all-time low, with job listings plummeting in both the US and UK. Alarmingly, the level of joblessness among graduates is, for the first time on record, above the overall unemployment rate.
The data underscores this retraction: Indeed, a major job platform, shows that the number of job vacancies for new graduates has dropped approximately 33%—about a third—over the past year. This decline means more people are chasing fewer roles, given that more individuals are attending university. Chris Eldridge, CEO at recruitment firm Robert Walters, attributes the difficulty largely to the economy, noting that companies are hesitant to risk capital when they lack foresight into future economic conditions. This uncertainty has led to companies pausing graduate intake, a freeze that has now lasted for two to two and a half years.
The consequence of this prolonged hiring pause is significant: a "void of talent" is projected to appear in the workforce within two or three years. Without the infusion of new skills, companies tend to retain and potentially over-promote existing staff. The steep drop in available positions is particularly noticeable in entry-level roles. Jeremy Cla, co-founder and CEO of AI-powered recruitment platform Welcome to the Jungle, observes a sharp decline on his platform since 2024, noting that the drop in entry-level jobs has been three times faster and higher than the decline for more senior positions. Companies are waiting to assess the full impact of AI before committing to recruitment, accelerating this decline.
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The influence of Artificial Intelligence is dramatically reshaping careers, especially in fields like accounting and law, where AI could potentially execute up to 80% of the tasks typically done by junior staff. These tasks are often repetitive, commoditized, data-orientated, and administrative. Senior partner at Simmons and Simmons, Julian Taylor, acknowledges that firms are predicting significant shifts in career structure and the organizational chart, yet he warns that cutting graduate intake is "really dangerous". If the entry point to a profession becomes too narrow, the talent pipeline necessary for the future is compromised. For instance, if law firms, some of which have an average employee age of 55, fail to hire new talent now, the company may cease to exist in 15 years.
While AI is expected to revolutionize work by handling "drudge work" and allowing highly skilled trainees to move "further up the value chain," the new environment demands new skills. Crucially, employees must actively engage in complex and clear prompt writing to ensure AI output is accurate and useful, counteracting the human tendency toward "cognitive offload"—reducing mental intensity when using AI. Being adept at communicating complex ideas effectively through prompts is deemed a key skill for the future.
Given the vanishing entry-level roles, the value of a university degree is being questioned. Berwick notes that while a degree from a top university is always beneficial, the current education system is not equipping graduates with the necessary skills and critical thinking for future workplaces. In seeking solutions to this "super modern problem," some are looking toward historical models, such as medieval apprenticeship systems, where middle-class families would pay a master craftsman to train their young person. Alternatives being considered include a model where companies charge a fee to families for training a young person or a return to a form of indentured labor, where training is provided in exchange for a commitment to stay with the company for a set period. Ultimately, as Berwick suggests, by cutting entry-level jobs and the necessary repetition that comes with learning, the vital pipeline for future talent is being discarded, risking that the workforce may all be adrift.
