Podcast Summary: The Journal – "AI Is Coming for Entry-Level Jobs"

Released on July 7, 2025, "AI Is Coming for Entry-Level Jobs" delves into the evolving landscape of the job market, particularly focusing on how artificial intelligence (AI) is reshaping opportunities for recent graduates. Hosted by Jessica Mendoza and Ryan Knutson, and co-produced by The Wall Street Journal and Gimlet, this episode combines personal narratives with expert insights to explore the challenges and implications of AI-driven workforce transformations.

1. Introduction: The Struggling Graduate

The episode opens with the story of Zara Anwar, a 22-year-old recent graduate from Lehigh University in Pennsylvania. Jessica Mendoza introduces Zara, highlighting her initial optimism about entering the workforce.

• [00:05] Jessica Mendoza: "Zara Anwar is 22 years old. She just graduated from Lehigh University in Pennsylvania. Congratulations."

Zara shares her feelings about graduation and her anticipation of starting her career.

• [00:17] Zara Anwar: "Yeah, graduation was great. You know, you look forward to it for four years. And I would say I just felt pure joy."

Despite meticulous planning—internships, networking, and strategic course selections—Zara faced significant challenges in securing a job, ultimately applying to over 60 positions without substantial responses.

• [01:25] Zara Anwar: "60 plus, maybe more. I was really just applying to everything I saw, anything I saw."
• [01:37] Zara Anwar: "Most of the time, no responses. It got pretty sad at points and hopeless applying to these jobs."

2. A Grim Job Market for New Graduates

Jessica Mendoza contextualizes Zara's experience within a broader trend, citing a New York Fed report that reveals the unemployment gap between young graduates and the general population has widened to its largest in 35 years.

• [01:53] Jessica Mendoza: "Zara is among the many young people stepping off of their college campuses and into a particularly bleak job market this year. The gap in the unemployment rate between these young grads and the broader population was at its widest in about 35 years."

Zara expresses frustration, noting the contrast between her experience and that of her older siblings who found jobs more easily.

• [02:12] Zara Anwar: "It seems so much easier for my siblings... I was getting frustrated because I was doing those steps. Where was the job?"

3. Corporate Hiring Philosophy Shifts: Insights from Chip Cutter

Jessica introduces Chip Cutter, a colleague covering workplace and management issues, who provides a deep dive into the current economic paradox: strong economic indicators coexisting with a tough job market for new grads.

• [04:03] Chip Cutter: "This is what I think is really upsetting a lot of job seekers right now, where the economy seems like it's still doing okay... what they're not doing is saying, we want to grow our headcount or add more people right now."

Chip explains that companies are re-evaluating the traditional view of headcount as a growth metric. Previously, talent hoarding was common, with firms hiring extensively in anticipation of future growth. However, the current trend underscores a shift towards leaner operations.

• [04:44] Chip Cutter: "They used to see headcount as a sign of growth... but the idea was that if we want to grow in the future, we need to just suck up as many of the most qualified, talented, skilled professionals in America."

This philosophical shift is impacting even large, established companies across various industries.

• [06:08] Jessica Mendoza: "This downsizing is happening across industries from tech giants like Microsoft and Hewlett Packard Enterprise to consumer goods conglomerates like Procter and Gamble."

4. AI's Role in Reducing Workforce Needs

The integration of AI is a central theme in the episode, with executives leveraging AI to perform tasks traditionally handled by entry-level employees. This trend is leading to a reduction in hiring for junior positions.

• [06:49] Chip Cutter: "Companies can be run differently, largely because of AI, because of these tools that are out there that can do the work that humans once could do."

Specific examples highlight this shift:

• Grindr: The CEO prefers hiring experienced software engineers who can utilize AI tools effectively over entry-level hires.

  • [06:49] Chip Cutter: "The CEO of the dating app Grindr... he would prefer to hire someone who's more experienced and can then use the AI tools to aid in their work."

• Ford: Predicts that AI will replace half of all white-collar jobs in the U.S.

  • [07:20] Zara Anwar: "Amazon CEO Andy Jassy says AI will lead to fewer corporate jobs at the company."

• JPMorgan Chase: Anticipates a 10% reduction in operations headcount due to AI integration.

• Amazon: Actively deploying generative AI to handle tasks like content creation, coding, and customer service, signaling a move towards a smaller, more efficient workforce.

  • [07:59] Jessica Mendoza: "He added, it's hard to know exactly where this nets out over time, but in the next few years we expect that this will reduce our total corporate workforce."

5. Workplace Impact and Employee Morale

The adoption of AI is not only reshaping hiring practices but also affecting workplace dynamics and employee well-being. Chip describes a "undercurrent of misery" among workers due to increased workloads and reduced growth opportunities.

• [10:18] Chip Cutter: "There's this undercurrent of misery in the workplace right now... the balance of power has shifted back to companies."

Employees are experiencing heightened pressure, taking on additional responsibilities without corresponding support or opportunities for advancement.

6. AI Targeting Entry-Level Roles: Breaking the Unwritten Agreement

A significant concern is that AI is undermining the traditional pathway for new graduates to gain experience and ascend the career ladder. Historically, entry-level positions provided the necessary groundwork for professional growth, but AI's encroachment threatens this crucial developmental phase.

• [11:28] Jessica Mendoza: "And some of the most affected are those just beginning their corporate careers... AI could tear up that contract."

Chip elaborates on the reluctance of companies to invest in training entry-level employees, as AI can handle many of the tasks typically assigned to these roles.

• [11:51] Chip Cutter: "That's something we hear from so many people too, is that, well, the software can do sort of the more junior level tasks... We'd rather have someone who's more experienced, who can then just be even more productive with these tools."

This shift threatens to create a "diamond-shaped" organizational structure, where fewer entry-level positions limit opportunities for new graduates.

• [12:11] Chip Cutter: "There is this belief that you maybe don't need as many entry level workers as you once did... it is going to change sort of how people's careers look."

7. Zara Anwar's Ongoing Struggle and Adaptation

Zara's narrative continues to exemplify the challenges faced by recent graduates. After initially securing a job offer as a data analyst, Zara's start date was postponed multiple times, casting doubt on her job security.

• [14:25] Zara Anwar: "To be honest with you, I have no idea. And so I have to be in the mindset of if this falls through, what is my safety net."

In response to the uncertain job market, Zara is proactively enhancing her skills by taking additional courses on large language models to improve her employability.

• [15:21] Jessica Mendoza: "In the meantime, Zara says she's looking to take additional courses on large language models to make her an even stronger candidate in the current job market."
• [15:30] Zara Anwar: "And that's how I'm spending my time, because I don't want to just sit and dwell and be upset about something that I can't control. Keep a routine, keep my head up and hope for the best."

8. The Road Ahead: Unanswered Questions and Future Implications

The episode concludes by highlighting the uncertainty surrounding the future of entry-level positions and the broader implications of AI on the workforce. Chip acknowledges the lack of clear solutions to bridge the experience gap for new graduates.

• [14:53] Chip Cutter: "No company really wants to take on that role... how do people get the reps in and just get the experience of working to make them better professionals? And I don't think we have a clear answer on that."

Conclusion: A Changing Employment Landscape

"AI Is Coming for Entry-Level Jobs" paints a comprehensive picture of a job market in flux, where technological advancements are both a boon for corporate efficiency and a barrier for emerging professionals. Through Zara Anwar's personal journey and Chip Cutter's expert analysis, the episode underscores the pressing need for adaptive strategies to ensure that AI-driven growth does not leave new graduates behind.

For more insights and detailed discussions on money, business, and power, tune into future episodes of The Journal, co-produced by Spotify and The Wall Street Journal.