Nearly two-thirds of workers believe artificial intelligence is reducing entry-level hiring opportunities, according to new research.
However, workers remain more concerned about salaries and job security than being replaced by AI, according to the study from workforce platform Indeed Flex. The survey of approximately 2,000 workers across the UK and United States found that 62% believe employers are reducing entry-level hiring because AI is replacing routine tasks.
Yet perceptions appear to be running ahead of reality. Only 31% of respondents said AI has actually reduced entry-level opportunities within their own industry, highlighting a growing gap between what workers fear and what they have personally experienced.
The findings come amid mounting concerns over the future of early-career employment. A recent study found that one million young people are now locked out of work as entry-level opportunities continue to disappear, while separate research highlighted record numbers of young Britons leaving the UK as youth unemployment rises and graduate opportunities decline. Together, the studies point to an increasingly challenging labour market for those taking their first career steps.
WORKERS PRIORITISE PAY OVER AI
Despite widespread debate about automation, workers remain focused on traditional employment concerns. When asked about the biggest challenge they currently face in today’s labour market:
- 30% cited pay
- 25% said competition from other candidates
- Just 9% said AI replacing jobs they qualify for was their biggest concern.
The findings suggest that while AI dominates headlines, everyday workplace challenges continue to matter most.
HOW AI IS CHANGING HIRING
Rather than changing which jobs people pursue, AI appears to be changing how they prepare their applications. The research found that 59% of workers have altered their application process in some way. Specifically:
- 22% use AI tools such as ChatGPT to help write CVs, cover letters or job applications.
- 14% apply more selectively.
- 12% apply for more roles than before.
- 11% spend more time tailoring their CV to individual vacancies.
“AI is reshaping hiring, but it’s not replacing the fundamentals of what workers care about. People are still looking for competitive pay, stability and opportunities to build meaningful careers,” said Novo Constare, CEO and Co-founder of Indeed Flex. “What’s changing is how they prepare for those opportunities. Workers are embracing AI as a tool while still expecting a hiring process that’s transparent, fair and ultimately human.”
AI IMPACTING CONFIDENCE SKILLS
The survey also explored how AI is influencing confidence in today’s labour market. It found:
- 34% say AI has made them less confident about competing for jobs.
- 29% say AI has made them more confident.
- 37% say AI has had no impact on their confidence.
As organisations increasingly adopt AI across recruitment and workplace processes, the findings suggest transparency will be critical to maintaining candidate trust.
GRADUATES FEEL THE GREATEST IMPACT
Recent graduates are significantly more likely than experienced professionals to believe AI is reducing entry-level opportunities. The survey found:
- 80% of recent graduates believe AI is reducing entry-level hiring.
- Graduates are 21% more likely than mid-career professionals to hold that belief.
Those concerns mirror previous employer research covered by Fair Play Talks. Earlier this year, one survey found that one in five companies had already stopped hiring entry-level workers because of AI, raising fresh questions about how organisations will develop future talent pipelines if early-career opportunities continue to shrink.
WORKERS REMAIN WARY OF AI INTERVIEWS
Although employers are increasingly experimenting with AI throughout recruitment, few candidates have actually experienced AI-led interviews. The research found:
- Only 19% have completed an AI-powered interview.
- 28% believe AI interviews make recruitment worse for candidates.
- Just 10% believe they improve the hiring experience.
Interestingly, workers who had completed an AI-powered interview were more than twice as likely to use AI tools during their own job applications (29%) than those who did not expect to experience AI interviews (13%).
GUIDANCE FOR EMPLOYERS
Artificial intelligence offers significant opportunities to improve recruitment efficiency and productivity, but employers should be careful not to undermine their future workforce by reducing opportunities for graduates and early-career professionals.
Businesses can build trust while embracing AI by:
- Using AI to augment rather than replace junior talent, automating repetitive tasks while allowing graduates to develop critical thinking, creativity and communication skills.
- Being transparent about where AI is used during recruitment and ensuring candidates understand humans remain responsible for hiring decisions.
- Maintaining human oversight throughout recruitment to avoid over-reliance on automated screening.
- Investing in AI literacy so employees and graduates understand how to use AI responsibly and effectively.
- Prioritising skills-based hiring rather than relying solely on experience-based screening.
- Protecting graduate programmes, internships and apprenticeships to ensure organisations continue developing future leaders.
- Regularly auditing AI recruitment systems for unintended bias and fairness.
- Communicating openly about how AI supports employees rather than simply replacing jobs.
Organisations that combine technological innovation with human-centred leadership are likely to be best placed to attract talent, build trust and develop the skilled workforce needed for the future.
RELATED ARTICLES
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One in five companies have stopped hiring entry-level workers because of AI, survey finds
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