The job market has been a challenging terrain. The unemployment rate among young college graduates stands at 5.6%, hovering near its highest level in more than a decade outside the pandemic. Meanwhile, prominent executives—ranging from tech leaders to industry heavyweights—have cautioned that artificial intelligence will reduce corporate entry-level positions.
However, some companies are recognizing that excluding young workers from the talent pipeline is not a sustainable long-term approach. The $240 billion tech behemoth has just announced it is increasing hiring of Gen Z—rather than reducing it.
“Companies that will be most successful in the next three to five years are those that have doubled down on entry-level hiring in this climate,” stated IBM’s chief human resources officer this week.
“We are tripling our entry-level hiring, and that includes software developers and all the jobs that we’re being told AI can handle.”
While she acknowledged that many responsibilities once associated with entry-level jobs can now be automated, IBM has since revised its roles across sectors to incorporate AI proficiency. For instance, software engineers will spend less time on routine coding and more time interacting with customers, and HR staff will focus more on intervening with chatbots instead of answering every query.
LaMoreaux noted that this shift not only cultivates more resilient skills for workers but also generates greater long-term value for the company.
With job market conditions posing challenges for young candidates in 2026, applicants who demonstrate initiative and proficiency with AI may be the ones to stand out at companies like IBM. According to reports, AI literacy is currently the fastest-growing skill in the U.S.
Reducing entry-level talent could have long-term drawbacks, according to IBM’s HR chief
As AI intensifies pressure on companies to be more efficient and productive, early-career hiring has often been seen as the easiest area to reduce. A survey revealed that 37% of organizations intend to replace early career roles with AI.
However, LaMoreaux contended that while this strategy might benefit short-term finances, it could lead to problems down the line.
Reducing junior staff numbers risks eventually creating a shortage of mid-level managers. Trying to recruit talent from competitors is likely more expensive, and external hires typically take longer to adapt to internal systems and culture.
That’s why, she stated, HR leaders need to oppose this.
“It’s your responsibility to advocate for entry-level hires,” she said. “Build the business case now; even if it doesn’t seem clear to your leaders now, because AI will make your job easier in three years.”
IBM’s CEO has already heeded LaMoreaux’s appeal and dismissed the notion that AI should result in fewer opportunities for graduates.
“People are discussing layoffs or halting hiring, but I want to say we’re doing the opposite,” Krishna told in October. “I expect we’ll hire more college graduates in the next 12 months than in the past few years, so you’ll see that trend.”
However, just a week after his remarks, IBM announced it would lay off thousands of workers by year-end as it shifts focus to high-growth software and AI sectors. A company spokesperson stated at the time that the layoff round would affect a relatively low single-digit percentage of the company’s global workforce, and when combined with new hiring, IBM’s U.S. headcount would remain roughly unchanged.
reached out to IBM for additional comment.
Similar to IBM, some tech companies are reevaluating their talent pipelines—and welcoming Gen Z
IBM isn’t the only one betting that younger workers can actually speed up AI adoption. In fact, Melanie Rosenwasser, chief people officer, notes that Gen Z enters the workforce with better AI skills than their older counterparts.
“It’s as if they’re riding in the Tour de France while the rest of us are still on training wheels,” Rosenwasser said. “Honestly, they’re way ahead of us in proficiency.”
The file-sharing company is planning to expand its internship and new graduate programs by 25% to take advantage of younger workers’ AI proficiency.
Ravi Kumar S, CEO of IT firm Cognizant, similarly announced last year that he would create more entry-level jobs based on his positive outlook on Gen Z.
“Many companies have a pyramid with school graduates at the base. This pyramid will be broader and shorter, and the path to expertise will be quicker,” he stated.
“This year, we’re hiring more school graduates than ever. I can provide a school graduate with the tools to exceed their capabilities. AI is an amplifier of human potential. It’s not a replacement strategy.”