Former Meta and Salesforce AI executive Clara Shih says the entry level job market has reached its weakest point in 37 years, based on what she witnessed inside one of the most advanced technology environments.
The turning point came when AI systems began matching and, in some cases, outperforming experienced employees across multiple tasks. That moment, she said, made it clear that the way work is done and how companies hire has fundamentally changed.
Outside the workplace, she was hearing a very different reality. Even highly qualified graduates, including those from top universities, were struggling to secure their first job. This contrast between rising system capability and declining job access led to a clear conclusion that the structure of entry level hiring has already shifted.
Reshaping Early Career Roles
Tasks that once defined entry level roles such as research, drafting, customer interaction, and data handling are increasingly being handled by systems at scale. These responsibilities historically served as the starting layer where new employees gained experience and developed practical skills.
As these functions move into automated workflows, companies are reducing their dependence on large junior teams. Instead of hiring and training fresh graduates in volume, organizations are building smaller teams where fewer employees are expected to handle broader responsibilities with the support of advanced tools.
The traditional learning layer that once existed at the beginning of most careers is gradually disappearing.
Entry Level Jobs Are Declining
The decline in entry level opportunities is now clearly visible in broader labor trends.
Data from institutions such as the Federal Reserve Bank of New York shows that more than 40 percent of recent graduates are underemployed, working in roles that do not require their degree. At the same time, hiring for junior positions in sectors like technology and marketing has slowed as companies prioritize efficiency and automation.
Employers are also changing how they evaluate talent. Rather than hiring for potential and long term development, many are prioritizing candidates who can contribute immediately and work effectively with modern tools from day one.
New Work Foundation and Career Tools
Shih has also taken steps to address these changes by launching the New Work Foundation, a nonprofit initiative aimed at helping young professionals navigate a changing job market.
The initiative includes a platform called dear [CC], which introduces tools designed to rethink how people enter the workforce.
JobClaw matches candidates to roles based on strengths and interests rather than traditional resumes, while Field Report provides insights into job availability, competition levels, and how exposed different roles are to automation.
These tools point toward skill based hiring and alternative entry pathways as traditional entry level roles continue to narrow.
New Graduates Face Tougher Competition
Young professionals are encountering a job market where opportunities are more limited and expectations are significantly higher than before.
Recent surveys, including data from Gallup, show declining confidence among Gen Z when it comes to job opportunities, along with rising concern about long term career stability. Many are now exploring freelance work, independent projects, and non traditional career paths as alternatives to conventional employment.
Employers, meanwhile, increasingly expect candidates to be familiar with modern tools from the beginning, raising the bar for those entering the workforce for the first time.
A New Way Careers Begin
Clara Shih’s warning points to a deeper structural shift already underway. Entry level hiring is no longer functioning at the same scale or structure as before, and the pathway into professional life is becoming narrower.
What was once considered the most accessible stage of employment is now one of the most competitive, marking a significant change in how careers begin across industries.