For now, AI is devouring jobs. This, too, shall pass

Chances are it will create many more jobs in the future. But the transition will pose challenges.

- Vikram Khanna

This is not a good time for entry-level job seekers to launch their careers. The recent evidence shows that the impact of artificial intelligence (AI) is already showing up in job markets, and new graduates are especially hard hit.

The latest Private Education Institution Graduate Employment Survey, released by SkillsFuture Singapore in April, showed that only 46.4 per cent of fresh graduates found full-time work in 2024, compared with 58.7 per cent in 2023.

Similar trends have been observed elsewhere. A recent study by researchers at Stanford University revealed that workers in the US aged between 22 and 25 have experienced a 13 per cent relative decline in employment since 2022, in occupations most exposed to AI, such as customer service representatives, accountants and software developers, as AI tools automate many routine tasks. The study adds that, in contrast, employment for workers in less exposed fields and more experienced workers in the same occupations has remained stable or continued to grow.

Ms Sumita Tandon, human resources director for the Asia-Pacific at LinkedIn, suggested in a recent podcast on CNA that one reason for the decline in job openings for new graduates is that companies are investing in upskilling and reskilling their existing workers rather than growing their headcount. Moreover, new roles have emerged, such as AI engineers, for which demand far exceeds supply. So even as job seekers are plentiful, human resources executives say they find it hard to recruit the people they need.