A Glimmer of Hiring Hope for Young Workers
A new report from Korn Ferry’s AMS business shows that 81% of firms plan to increase entry-level hiring.
By the time the oldest members of Gen Alpha are out of college, firms may be ready to start hiring them for entry-level roles again.
That’s one of the biggest takeaways from a new report from Korn Ferry’s AMS business: Early-career jobs are poised to rebound from their current doldrums in time for Gen Alpha’s entry into the workforce. According to the report, one of the most comprehensive to look at Gen Alpha and the future of early-career hiring, eight out of ten firms plan to increase entry-level hiring over the next two years. Moreover, contrary to conventional wisdom and current trends, 76% of recruiters and hiring managers do not believe entry-level jobs will disappear from their firms. “Companies are realizing that early career roles are key to aligning AI and the future leadership pipeline for the organization,” says Janet Mertens, managing director of data, insight and analytics at the Korn Ferry Institute.
Unlike millennials and Gen Zers currently in the workforce, members of Gen Alpha—those born between 2010 and 2024—are optimistic about their careers. Globally, nearly 60% of them believe they will secure a job when they are ready to enter the workforce. By contrast, more than half of Gen-Z workers fear being laid off, with many citing AI as the reason, and worry that fewer jobs will be available overall over the next decade. “The coming generation of workers has a clearer view of where they believe they are headed,” says Mertens.
Gen Alpha’s optimism could partly be a function of lowered expectations. According to the report, nearly 70% are willing to take project-based, part-time, or temporary work in lieu of a full-time role. They are also shifting away from sectors that are cutting back on entry-level roles and looking into careers and industries that are somewhat isolated from AI, like energy, healthcare, and the public sector. “They are shifting to more focused searches and aren’t looking for or expecting to find their target job ” says Mertens.
But Gen Alpha may be viewing their situation through rose-colored glasses, say some experts. Current trends certainly don’t suggest that an increase in entry-level hiring is on the horizon. Several firms, in sectors including finance, professional services, and tech, have announced plans to scale back on entry-level hiring. Across industries, job postings for these early-career positions account for a historically low 38% of all available roles. At the same time, the unemployment rate of 5.6% for recent college graduates is outpacing the overall rate of 4.2%. “There’s no doubt entry-level hiring has dropped from where it has been historically,” says Ron Seifert, North America workforce reward and benefits leader at Korn Ferry. Lisa Harrison, a Korn Ferry senior client partner, agrees, adding that even with most firms moving to skills-based hiring, “leaders want candidates who have some work experience.”
It also appears that Gen Alpha (which will comprise 19% of the global workforce by 2035) and their future employers may have different opinions of the skills they do bring to the table. Members of Gen Alpha rank adaptability, emotional intelligence, creativity, and communication as their strongest skills; AI literacy ranks fifth. Leaders don’t necessarily agree with those self-reported rankings, however. Seven out of ten business leaders say younger workers lack effective communication skills. Studies show this group also trails the workforce average in critical thinking and creative problem-solving.
It’s also worth noting the kinds of jobs early-career talent is being hired for. Data shows that on the one hand, many entry-level jobs are turning into “AI-babysitting roles” that require workers to check outputs and manage agents. On the other hand, those who have demonstrated AI proficiency have been rewarded with still more work. “Right now, it’s fair to say the focus is on task execution,” says Mertens.
Any plans by firms to increase entry-level hiring likely won’t be welcome news to middle managers, say experts. Already bearing the brunt of the AI transformation in the form of eliminated roles and extra work, middle managers are likely to face more pressure and less security as Gen Alpha’s numbers in the workforce increase. It’s a natural organizational progression, says Korn Ferry senior client partner Dominic Cottone. “You hire entry-level employees, train them on AI and upskill them, and advance them, while subtracting from the upper ranks,” he says.
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