AI Slashes Entry-Level Job Market by Over 50% for Gen Z, Study Finds

Key Statistics:

• Entry-level Software engineering roles saw one of the steepest drops: down 72% at its low point from Q1 2023, and still nearly 60% below that baseline by Q3 2025.

• Customer support & call center jobs have seen the hardest hit, plummeting from 361,988 openings in early 2023 to just 76,446 by mid-2024, a 79% reduction

• Finance sector entry-level openings fell from 66,264 to 23,234 at their lowest point, showing a 65% decline

• Slight recovery observed in most sectors during 2025, but numbers remain far below pre-AI / pre-ChatGPT levels

• Study indicates Gen Z graduates face significantly reduced job prospects in fields heavily impacted by AI adoption

A new study by ResumeUp.AI has revealed a dramatic decline in entry-level job opportunities across multiple sectors following the widespread adoption of artificial intelligence tools like ChatGPT.

The analysis tracked job postings on LinkedIn from Q1 2023 through Q3 2025, focusing on sectors most affected by AI integration. The findings paint a concerning picture for Gen Z graduates entering the workforce.

Top 5 Sectors Most Affected by AI Since Q1 2023

Software engineering, long considered a safe career choice, showed surprising vulnerability with openings dropping from 29,949 to just 8,488 at their lowest point – a 72% reduction.

Customer support and call center roles experienced the most severe impact, with job listings collapsing from 361,988 in early 2023 to just 76,446 by mid-2024 – representing a staggering 79% reduction before a partial recovery to 155,782 by Q3 2025.

"Companies are rapidly automating customer service functions with AI chatbots and virtual assistants," said Rohith, Founder of ResumeUp.AI. "This shift has drastically reduced the need for human representatives, particularly at the entry level where many young professionals traditionally start their careers."

The finance and investment banking sector saw its entry-level positions fall from 66,264 in Q1 2023 to 23,234 by the end of 2024 – a 65% decline. Despite some recovery in 2025, numbers remain well below pre-AI levels.

The study found that HR and recruiting positions decreased from 27,244 to 10,499 at their lowest point, while marketing and advertising roles fell from 17,738 to 7,899 – reductions of 61% and 55% respectively.

Sectors Least Impacted by AI (Q1 2023 - Q3 2025)

In contrast, graphic design and illustration showed the least dramatic percentage decrease among the sectors analyzed, dropping from 17,438 in early 2023 to a low of 9,678 by Q3 2024 – a 44% decline.

Similarly, copywriting and content writing positions experienced the smallest absolute decline, going from 10,758 in Q1 2023 to 6,118 at their lowest point – a 43% reduction. Interestingly, this sector showed a significant recovery to 9,806 jobs by Q3 2025, nearly returning to its pre-AI levels.

The data shows modest recovery trends in most sectors during 2025, suggesting potential stabilization as the job market adapts to AI integration. However, entry-level opportunities remain significantly below pre-AI levels.

According to the report from Bureau of Labor Statistics projections examining AI impacts on employment from 2023-2033, it projects long-term growth for software developers (17.9%) and database administrators (8.2%), but the immediate short-term disruption revealed in ResumeUp.AI's analysis suggests Gen Z graduates face a challenging transition period.

"We're witnessing a fundamental reshaping of entry-level work across industries," said Rohith. "Gen Z graduates need to be strategic about skill development, focusing on areas that complement AI rather than compete with it. The ability to work alongside AI systems will be crucial for career success."

The study indicates that while AI eliminates certain job functions, it also changes the skill requirements for remaining positions, often raising the bar for entry-level candidates who now need more specialized knowledge to secure their first role.

"Recent graduates should focus on developing hybrid skill sets that combine technical literacy with distinctly human capabilities like critical thinking, creativity, and emotional intelligence," Rohith advised. "The most successful candidates will be those who position themselves as AI-augmented professionals rather than competing against automation."

ENDS

If using this story, please credit and link to: https://resumeup.ai/

Methodology:

Data was collected from LinkedIn job postings across the United States from Q1 2023 (after the release of ChatGPT) through Q3 2025.

The study analyzed entry-level job postings across eight sectors most affected by AI adoption: Software Engineering, Marketing and Advertising, HR & Recruiting, Finance & Investment Banking, Copywriting and Content Writing, Customer Service Representatives, Graphic Design and Illustration, and Customer Support and Call Center.

Full Dataset: Job Postings by Sector (2022-2025)