The Disappearing First Job

How AI Is Shutting the Door on Entry-Level Careers

You’ve probably seen the headlines:
“Jobs Are Up!”
“Unemployment Remains Low!”
“Hiring Market Still Hot!”

And yet… your cousin just graduated college and can’t land a job. Your friend in tech just got laid off. You’ve heard of companies freezing entry-level positions or slashing recruiting budgets.

What’s really going on?

Beneath the surface of the job market, there’s a much more complex story emerging. Especially if you’re just starting out in your career.

The Job Market Paradox

On the surface, the U.S. labor market looks solid. In May, projections called for 125,000 jobs to be added. Not spectacular, but not alarming. Unemployment was still low, hovering around 4.2%.

But that number hides a deeper shift.

The pace of job creation is slowing. The post-pandemic hiring boom is fading. Companies are struggling with high labor costs and tighter profit margins thanks to elevated interest rates. Add in fresh tariffs and global trade tensions, and you’ve got a wave of caution sweeping through hiring departments.

But, that’s only half the story.

The other half is something more structural, more permanent and more alarming for people early in their careers.