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When I left for college in the fall of 1991, the internet era was just beginning. By sophomore year, I received my first email address. By junior year, the first commercial web browser was released. The summer after graduation, I worked as a reporter at the Arizona Republic covering the internet’s rise in our everyday lives, writing about the opening of internet cafés and businesses launching their first websites. I was part of an in-between class of graduates who went off to college just before a new technology transformed what would define our careers.

So when Alina McMahon, a recent University of Pittsburgh graduate, described her job search to me, I immediately recognized her predicament. McMahon began college before AI was a thing. Three and a half years later, she graduated into a world where it was suddenly everywhere. McMahon majored in marketing, with a minor in film and media studies. “I was trying to do the stable option,” she said of her business degree. She followed the standard advice given to all undergraduates hoping for a job after college: Network and intern. Her first “coffee chat” with a Pitt alumnus came freshman year; she landed three internships, including one in Los Angeles at Paramount in media planning. There she compiled competitor updates and helped calculate metrics for which billboard advertisements the company would buy.

But when she started to apply for full-time jobs, all she heard back — on the rare occasions she heard anything — was that roles were being cut, either because of AI or outsourcing. Before pausing her job search recently, McMahon had applied to roughly 150 jobs. “I know those are kind of rookie numbers in this environment,” she said jokingly. “It’s very discouraging.”
McMahon’s frustrations are pretty typical among job seekers freshly out of college. There were 15 percent fewer entry-level and internship job postings in 2025 than the year before, according to Handshake, a job-search platform popular with college students; meanwhile, applications per posting rose 26 percent. The unemployment rate for new college graduates was 5.7 percent in December, more than a full percentage point above the national average and higher even than what high-school graduates face.

How much AI is to blame for the fragile entry-level job market is unclear. Several research studies show AI is hitting young college-educated workers disproportionately, but broader economic forces are part of the story, too. As Christine Cruzvergara, Handshake’s chief education-strategy officer, told me, AI isn’t “taking” jobs so much as employers are “choosing” to replace parts of jobs with automation rather than redesign roles around workers. “They’re replacing people instead of enabling their workforce,” she said. 

The fact that Gen-Z college interns and recent graduates are the first workers being affected by AI is surprising. Historically, major technological shifts favored junior employees because they tend to make less money and be more skilled and enthusiastic in embracing new tools. But a study from Stanford’s Digital Economy Lab in August showed something quite different. Employment for Gen-Z college graduates in AI-affected jobs, such as software development and customer support, has fallen by 16 percent since late 2022. Meanwhile, more experienced workers in the same occupations aren’t feeling the same impact (at least not yet), said Erik Brynjolfsson, an economist who led the study. Why the difference? Senior workers, he told me, “learn tricks of the trade that maybe never get written down,” which allow them to better compete with AI than those new to a field who lack such “tacit knowledge.” For instance, that practical know-how might allow senior workers to better understand when AI is hallucinating, wrong, or simply not useful.

For employers, AI also complicates an already delicate calculus around hiring new talent. College interns and recent college graduates require — as they always have — time and resources to train. “It’s real easy to say ‘college students are expensive,’” Simon Kho told me in an interview. “Not from a salary standpoint, but from the investment we have to make.” Until recently, Kho ran early career programs at Raymond James Financial, where it took roughly 18 months for new college hires to pay off in terms of productivity. And then? “They get fidgety,” he added, and look for other jobs. “So you can see the challenges from an HR standpoint: ‘Where are we getting value? Will AI solve this for us?’”

Weeks after Stanford’s study was released, another by two researchers at Harvard University also found that less experienced employees were more affected by AI. And it revealed that where junior employees went to college influenced whether they stayed employed. Graduates from elite and lower-tier institutions fared better than those from mid-tier colleges, who experienced the steepest drop in employment. The study didn’t spell out why, but when I asked one of the authors, Seyed Mahdi Hosseini Maasoum, he offered a theory: Elite graduates may have stronger skills; lower-tier graduates may be cheaper. “Mid-tier graduates end up somewhat in between — they’re relatively costly to hire but not as skilled as graduates of the very prestigious universities — so they are hit the hardest,” Maasoum wrote to me.

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