Gen Z’s hiring hell is real: 1 in 3 employers admit they’re replacing entry-level roles with AI—and tech and manufacturing jobs are most at risk

For Gen Z, the job market has looked more resilient than many feared. The unemployment rate hasn’t skyrocketed, and some of the bleakest predictions about AI wiping out entry-level jobs—including warnings from Anthropic CEO Dario Amodei and OpenAI CEO Sam Altman—have been tempered by a labor market that has held up better than expected.

However, a new report from the Graduate Management Admission Council is throwing a wrench into that optimism.

One-third of employers say they are replacing entry-level jobs with AI, according to GMAC’s latest Corporate Recruiters survey, which polled more than 600 recruiters worldwide. More than half of the respondents recruit for Fortune 100 or Fortune 500 companies.

It’s an indication that Gen Z’s fears are becoming reality: the first ring of the career ladder is genuinely getting harder to reach.

Technology roles are most exposed, with 40% of employers in the industry saying AI is replacing entry-level positions, closely followed by manufacturing.

Yet Sabrina White, senior vice president of school & industry engagement at GMAC, said Gen Z shouldn’t interpret the findings as a reason to avoid AI. Instead, she argued, the report underscores the importance of learning to use the technology to create business........

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