Australian companies to slash entry-level jobs in major shift to AI
Think AI is not going to take your job? It’s not sounding promising for school leavers and uni graduates who hope to land an entry-level job in the near future.
Students who have just finished their HSC are in for some sobering news as new research reveals Aussie companies are investing more into AI than the next generation of workers.
The findings, from market intelligence firm International Data Corporation’s (IDC) AI at Work report, found the country’s entry-level crisis is worsening – with over 93 per cent of organisations revealing they anticipate reducing the general hiring of entry-level staff over the next one to five years.
Traditional university degrees are also getting the chop, with only five per cent of businesses considering them a top requirement.
Meanwhile, 70 per cent of organisations have moved beyond pilot projects in their AI adoption, and over half are willing to pay a premium of 25 per cent or more for AI talent.
So, what does this mean for young Aussies?
Queensland University professor Stan Karanasios said while it’s going to be a “bumpy ride”, the implementation of AI will “reshape” the workforce, not replace it.
“I think what it boils down to is the data suggests the type of jobs that are most likely to be hit by AI in the short term are those repetitive tasks, non-high-level, non-routine cognitive tasks,” he told news.com.au.
“Things that require some thinking and some problem solving, but not a huge amount of experience or complexity, and they are typically the jobs that junior staff start with and build the capabilities around.”
Prof Karanasios said firms need to start to “re-imagine” the way entry-level jobs are designed.
“They can’t simply be designed by repetitive or tasks that can be automated by AI – so rethinking what those entry-level jobs are and the value they offer, and focus on how AI can be used to open people in junior roles rather than simply replace them,” he added.
“Without those junior professionals, those graduates, it’s very difficult to build those future mid-level and future leaders – where do they come from? So that tap dries up.
“These junior professionals, they may be doing repetitive tasks, but they also bring with them innovation and ideas from the ground up.”
He said AI will lead to a slight headcount dip over the next three years, most likely via attrition and lower hiring as well as some redundancies.
“I think we’re all a bit anxious about the directions going and the implications it can have for our jobs,” Prof Karanasios said.
“The huge scale displacement will not happen overnight.
“Some jobs will be displaced, they’ll be automated and in addition to that, there’ll be some reinstatement, there’ll be new tech jobs that appear.”
His advice for young workers was to ensure they had strong soft skills, communication and critical thinking skills as they cannot be “outsourced to technology”.
The report, commissioned by Deel, revealed a 100 per cent uptake on AI.
Nine in 10 are seeing role changes or job displacement due to the technology’s integration which has 28 per cent undergoing significant workforce restructuring.
For those aiming for entry level roles, the requirements have changed with skills such as AI tools and coding boot camps highly rated, as well as problem-solving or critical thinking.
“Artificial intelligence is reshaping the global workforce at an unprecedented pace,
outstripping any recent technological shift,” IDC Vice President for AI in Asia Pacific Dr. Chris Marshall said.
“Organisations that will thrive are those that unite automation with a human-centred vision – investing in upskilling, redefining entry-level opportunities, and ensuring that governance and ethics evolve in step with innovation.”
Deel global head of policy Nick Catino said AI is “reshaping” how both workers and businesses operate.
“AI is no longer emerging, it’s fully here,” he said.
“Entry-level jobs are changing, and the skills companies look for are too.
“Both workers and businesses need to adapt quickly.
“This isn’t about staying competitive; it’s about staying viable.”
