Issue 8
Viewpoint
recruitment · United States
AI is taking over entry-level grunt work, putting the talent pipeline at risk
Between 21 and 25 September, several analyses said AI is replacing training-type tasks, cutting the number of entry-level positions, for example in New York's tech sector. Experts warn that as junior roles disappear, the production of expertise is also interrupted.
Who is affected and how
- early-career professional
- Look specifically for roles that offer hands-on practice, because classic entry-level positions are shrinking.
- HR professional
- Junior roles need to be redesigned so that gaining experience does not disappear.
- manager
- Today's junior hiring freeze may show up as a senior shortage in your team in a few years.
- SME owner
- Setting up AI-supported trainee positions can provide a cost-effective talent pipeline.
case · United States
Workday lawsuit: who is liable when an AI hiring system discriminates?
The lawsuit against Workday seeks class-action status and examines whether the vendor of candidate-screening software can be liable as the employer's agent. In 2024, 356 million people applied…
HR professionalVendor contracts must clarify responsibility for AI screening and auditability.job seekerAfter a rejection, it is worth considering legal options if the algorithm points to discrimination.SME ownerWhen choosing a hiring tool, ask the vendor for a bias audit and documentation.survey · United StatesAI created recession-like job market for some new graduates, but unemployment data does not yet confirm it
On 22 September it was reported that AI had created a recession-like market for some recent graduates, mainly in computer science. On 25–26 September several outlets reported that unemployment data…
early-career professionalWith a computer science degree, entry-level positions may be scarcer, so it is worth searching across several fields and roles.job seekerMacro data and professional experience can diverge, so check the supply of jobs field by field.HR professionalEntry-level hiring plans should be built on sector-specific data rather than headlines.regulation · European UnionEU AI Act: recruitment AI is high-risk, but some obligations get a delay
The EU AI Act has applied generally since 2 August 2026, but obligations for high-risk employment systems have been pushed to a later date in 2027, a reprieve of about 15 months. The transparency…
HR professionalStart now on AI notices for applicants and on assessing high-risk systems.job seekerYou have the right to know if an AI assistant is screening your application.SME ownerThe delay is worth using to clarify vendor compliance.managerCompliance documentation is an important criterion when choosing recruitment AI vendors.layoffs · United StatesAmazon reaches out to laid-off workers to rehire them for AI roles
Amazon has contacted former employees about AI roles after cutting 30,000 jobs, emails show. On September 24, Gartner also noted that 30% of workers laid off because of AI are rehired.
employeeAI skills can offer a chance of being rehired after a layoff, so it is worth keeping in touch with a former employer.HR professionalBringing back former employees can be a costly but fast alternative to external recruitment.managerA sudden headcount cut can later turn into a talent shortage.Hungary
surveyHungarian press: AI skills boost pay and career prospects, while job-loss picture is more nuancedemployeeAI proficiency can be used as an argument in salary negotiations and promotions.job seekerFor IT jobs, AI knowledge is almost a baseline requirement and should be highlighted on the CV.HR professionalAI requirements in job ads and pay bands should be aligned.recruitmentHungarian recruitment: AI screening, CV mistakes and the risks of recorded interviewsjob seekerOptimise the CV for AI screening and submit it without errors.early-career professionalRecent graduates need a new strategy because of AI filters.HR professionalWhen interviews are recorded with AI, data-protection notices and a retention policy are needed.surveyWhere do Hungarian companies stand on AI adoption? Data from one countySME ownerThe county data provide a benchmark for your own pace of AI adoption.HR professionalRegional differences also shape training needs.caseLinkedIn: scammers use verified profiles and AI to target job seekersjob seekerShare personal data only with a verified employer; a verified profile is no guarantee.HR professionalProtect your company's own recruiter profiles and job ads against impersonation.skillsHungarian AI training: free course, three-hour university programme and November software engineering courseemployeeFree courses provide basic skills with a low barrier to entry.job seekerA developer course can open up a new professional direction.SME ownerDirecting staff to free AI training is a cost-effective first step.surveyAlmost half of employees do not want AI in payrollHR professionalWhen automating payroll, employee trust must be built through transparency.SME ownerBefore introducing AI in payroll, promise staff an explanation and human oversight.surveyAI makes staff more efficient, but companies lack clear goals and judging expertise has become hardermanagerAlongside AI use, set clear goals and metrics.HR professionalIn performance reviews, assess understanding and judgment as well as output.skillsHR leaders fear AI and shrinking entry-level roles are eroding leadership skillsHR professionalLeadership development should be deliberately replenished if entry-level experience-building narrows.managerIt is worth securing leadership succession in your own team through mentoring.surveyEconomx: more than 70 percent of Hungarian internet users use AIHR professionalThe AI habits of new hires and candidates can now be considered a baseline expectation.employeeAI use is widespread, so standing out takes deeper expertise.toolAdózóna: Microsoft 365 Copilot use at work raises data protection issues and risksSME ownerBefore rolling out Copilot, small-business owners need to carry out a data protection impact assessment and set up an access-rights regime.HR professionalBecause employee data is processed, staff must be informed.
More key stories of the week
survey · global
Survey: 79% of workers have entered sensitive data into AI tools, and many use them in secret
A survey found that 79% of employees have entered sensitive information, such as HR data, logins or API keys, into AI tools. Further reports say most workers use generative AI in secret, at…
HR professionalAn AI usage policy and data-handling bans need to be issued and taught quickly.managerApproved AI tools should be provided, because a ban does not end shadow use.SME ownerCopying customer data and access keys into AI should be expressly prohibited.employeePasswords, HR data and customer data should not be entered into unauthorised tools.layoffs · United StatesTech layoffs outpace 2025 as big companies shift spending to AI, with Oracle leading
According to a September 25 report, tech-sector layoffs have exceeded 2025 levels as large companies redirect spending to AI. Oracle cut more than 2,500 jobs, and the affected group includes Stargate…
employeeIn IT roles, it is worth watching a company's AI investment plans, because budget reallocation can lead to job cuts.HR professionalIn layoffs, the credibility of the stated rationale and the way it is communicated carry legal and reputational risk.wages · globalAI skills pay premium: demand rises, but wages may lag
Between September 21 and 25, several reports said AI skills bring career and pay advantages, with demand having tripled since 2019. In the United States, reports cited 46% pay growth in AI-exposed…
employeeAI skills that can be demonstrated and measured can be used in salary negotiations.job seekerHighlighting AI knowledge in job applications can improve the chances of success.HR professionalWhen reviewing pay bands, an AI-skills allowance should be treated separately.skills · United StatesVerizon commits $70 million to nationwide AI skills training initiative
Verizon has announced a $70 million commitment to a nationwide AI skills training initiative. The news appeared on 23 September 2026 in twelve sources.
employeeIt is worth checking whether the programme's training is open to outsiders as well.HR professionalA large company's budget can serve as a benchmark when planning your own reskilling budget.layoffs · globalDebate: are AI really behind the layoffs, or are companies citing it too quickly?
Between September 21 and 24, several analyses questioned whether companies are citing AI too quickly to explain layoffs, and called for evidence instead of executive narratives. Others focused on…
HR professionalAn AI-justified layoff must be backed by documentation and evidence.managerCiting AI carries reputational risk if the stated reason is not well founded.employeeRoles may also be merged, so skills spanning several areas can offer protection.survey · globalPerformative AI use: many employees overstate AI use out of fear or pressure
Between 23 and 26 September, several surveys reported that employees are visibly using AI amid role changes, and many do not know why. Hungarian-language articles say fear and pressure are behind the…
managerAI usage metrics alone are misleading; results should be measured instead.HR professionalWhen setting AI adoption goals, it is best to avoid pure usage quotas.employeeAI use is more credibly demonstrated with real examples of value created.survey · United StatesGoldman Sachs: AI hiring headwinds hit white-collar and entry-level jobs first
A Goldman Sachs report says AI hiring headwinds hit white-collar roles first, sparing manual labour for now. Technology and professional services jobs are affected, and entry-level workers are the…
employeeIn office and knowledge-work jobs, build on competencies that AI cannot easily replace.early-career professionalExposure is greatest in entry-level roles, so look for new routes to gaining experience.HR professionalHeadcount planning should analyse the AI exposure of roles separately.survey · globalIBM CHRO study: critical thinking moves to the top of workforce priorities
A new IBM survey says AI is putting critical thinking at the centre of workforce development. Sixty percent of employees fear that AI is weakening key workplace skills.
HR professionalTraining plans should build thinking skills, not only tool use.managerTeams' use of AI should be governed so that judgement does not atrophy.employeeDeveloping critical thinking can be a differentiating factor.skills · United StatesJob seekers' AI skills and employer expectations diverge in North America
A survey found that 93% of job seekers say they are AI-ready, while 41% of employers expect advanced skills. Canadian recruiters also said which AI skills they expect from candidates.
job seekerAI proficiency should be demonstrated with concrete projects and examples, because self-assessment is not enough.HR professionalJob ads should state precisely the AI level that is expected.recruitment · United StatesAI adoption is driving hiring, but mostly for senior roles
A report of 21 September says AI adoption is leading to hiring, but mostly in senior roles.
50+/seniorDemand for experienced professionals is rising, so it is worth demonstrating AI proficiency too.early-career professionalEntry-level positions offer fewer chances, so internship and project-based routes matter more.regulation · United StatesUnion contracts with AI rules: Blizzard and the entertainment industry
Blizzard's first union contract sets layoff terms and AI rules (September 23). The US entertainment-industry agreements of the WGA, SAG-AFTRA and DGA likewise address the use of AI.
employeeAI protections and layoff provisions can be sought in collective bargaining.HR professionalNegotiators need to prepare for rules on AI adoption and headcount changes.survey · United KingdomDeloitte: UK workers spend nearly £1 billion of their own money on generative AI at work
Deloitte estimates that UK employees pay nearly £1 billion out of their own pockets for generative AI at work. The research says they spend their own money because of pressure to adopt AI.
HR professionalTool provision and expense reimbursement should be regulated so that employees are not left to fend for themselves.employeeA self-funded AI subscription should be agreed with the employer, including for data protection reasons.managerThe risk of unauthorised tools can be reduced with official licences.In brief
toolAgentic recruiting and HR platforms launch from Joveo, The Cognitive, Warp and othersHR professionalCompliance and candidate notification should be checked before automated interviewing is used.job seekerIt is worth preparing for an AI interview, because screening may take place without any human involvement.surveyChina's youth unemployment reaches 18.9% as AI adds pressureearly-career professionalA solo AI-based startup can be an alternative in a tough entry-level market.HR professionalFor expansion into China, tight local youth-talent indicators signal how competition is developing.agencyHR AI agent rollout: lessons from IBM, Workday and consultantsHR professionalData quality and task assignment should be sorted out before an agent is introduced.managerThe pilot should start with a narrow, measurable HR process.surveyIDB: AI could lift Latin America's economy by 5.1%, but wages may fallemployeeThe ability to change careers is key to protecting wages.HR professionalRetraining and mobility programmes can reduce wage risk.layoffsIndia: AI, cost cutting and GCC reskilling are reshaping the job marketemployeeGCCs and the semiconductor industry are hiring, so it is worth looking at reskilling programmes.HR professionalThe reskilling models can serve as a template for global service centres.surveySouth Korea and Hong Kong: young workers' jobs shrink in AI-exposed areasearly-career professionalEntry into AI-exposed industries is narrowing, so it is worth looking at alternative sectors too.50+/seniorEmployment of experienced workers is stable for now, but updating AI skills offers protection.skillsSingapore finance sector and Grab: free AI training for financial and platform workersemployeeIndustry-wide or platform-level free training offers an entry point to AI.HR professionalSector-level training programmes and in-house training can be coordinated.caseOlder workers: Japanese firms pay them to do nothing as AI stereotypes mislead50+/seniorDemonstrating AI proficiency counters age-related prejudice.HR professionalAvoiding age-based stereotypes is a legal as well as an organisational interest.surveyCHROs say AI creates 'invisible' workloadHR professionalWorkload assessments should also measure the checking and correction tasks that AI generates.managerProductivity expectations should be set with the extra work surrounding AI in mind.employeeIt is worth documenting the additional tasks linked to AI.caseShopify CEO says AI-proof-of-need rule led staff to throw "slop grenades" at each othermanagerQuality rules should accompany the expectation to use AI.employeeHanding over an AI draft without checking it burdens colleagues.surveyEconomists expect slightly steadier hiring but warn of AI wage pressure for college graduatesearly-career professionalIn starting-salary negotiations, present AI proficiency as a distinct asset.HR professionalWhen reviewing entry-level pay bands, AI exposure should also be taken into account.skillsWorkera: AI training more than doubled, but 56% of employees have no time for itHR professionalTraining provision must be accompanied by protected learning time.managerBuilding learning time into the work schedule is essential for training to have an effect.regulationUS state laws on AI in employee monitoring and hiring: a September 21 overviewHR professionalA company operating in several states needs a state-by-state compliance map.employeeEmployees should ask for information about monitoring tools and AI screening.surveyPew survey: most people worldwide fear AI-driven job lossesHR professionalEmployee fears are best addressed through open communication and clarifying AI roles.early-career professionalYoung people's concern is also visible in the entry-level market.regulationBill Gates says some jobs should be off limits to AI and firms replacing people should pay a "token tax"managerTax and regulatory risk should be built into the budget for AI replacement.recruitmentAI boosts blue-collar jobs, but data center backlash could slow growthjob seekerA skilled-trades career is also a good route around AI infrastructure, but dependence on projects is a risk.HR professionalTechnician hiring should be aligned with the permitting risks of infrastructure projects.caseOpenAI contractors who train AI models reportedly fired for using AI in the workemployeeAI use may be prohibited in data annotation and evaluation work, so it is worth clarifying in the contract.HR professionalFor contract AI workers, the rules on AI use must be defined precisely.regulationEEOC seeks consent decree in AI discrimination caseHR professionalThe effect of AI screening on candidates, such as discrimination risk, should be checked regularly.SME ownerGiven the EEOC's focus, documentation for hiring tools matters too.surveyStanford study uses data from 41 countries to examine how AI changes labor demandHR professionalJob-level demand analysis helps with headcount and training planning.skillsLearning and Work Institute: investing in AI skills could add £80 billion to UK economyHR professionalNational economic estimates can also be used to justify investment in training.