New Research Examines How AI Is Reshaping Early-Career Opportunities

As AI transforms the workplace, much of the debate has focused on the workers whose jobs may be displaced. But what about those who have not yet entered the workforce?

Today, the Center for the Governance of Change at IE University is pleased to publish Getting in the Front Door in the Age of AI: Policies to Help Early-Career Workers, a new research paper by Rachel Lipson (Harvard Kennedy School and Brookings Institution).

Click here to read the paper

The paper examines growing concerns that AI may be disrupting traditional entry-level career pathways by automating many of the routine, codified tasks that have historically served as stepping stones for recent graduates. While the evidence remains mixed, early signs point to a weakening entry-level labor market in several advanced economies, particularly in sectors with high AI exposure.

The stakes are high. Research shows that entering the labor market during a period of weak hiring can have long-lasting consequences for earnings, career progression, and social mobility. Beyond the impact on individuals, a decline in early-career opportunities could weaken future talent pipelines, increase fiscal pressures, and deepen political disaffection among younger generations.

Drawing on lessons from past economic shocks, the paper outlines a practical policy menu for the AI era, including:

• Strengthening education-to-work pathways through apprenticeships and work-based learning.
• Improving job matching and career guidance for new entrants.
• Supporting employers’ investment in training and early-career talent.
• Exploring targeted hiring incentives where appropriate.
• Developing proactive strategies before disruption becomes entrenched.

The paper's central message is clear: policymakers should not wait for perfect evidence before acting. Regardless of how AI ultimately reshapes the labor market, investing in stronger bridges between education and employment is a “no regrets” strategy that can help young people navigate uncertainty and seize new opportunities.

This publication is the third in a series of research papers that will be released as part of AI4DemocraticProsperity, an initiative developed by the Center for the Governance of Change in strategic partnership with Microsoft. The project’s Research Lead is Claudio Feijoo, Jean Monnet Chair on Technology Diplomacy and Digital Sovereignty at the Universidad Politécnica de Madrid.

Thank you to the members of the project’s Advisory Board—Irene Blázquez Navarro, Colleen Kerr, Gianluca Misuraca, Patrizia Nanz, and Carlos Santiso—for their thoughtful contributions and valuable feedback throughout the development of this paper.