AI Is Leading College Graduates To Question Job Readiness

Results from a new survey suggest that college graduates are worried about the impact that the rapid emergence of generative artificial intelligence (AI) tools like ChatGPT will have on their employability.

And employers also acknowledge that the hiring landscape is being changed quickly by the new technology, leading them to look for new hires that can combine so called “soft skills” like emotional intelligence, negotiation, and communication with the ability to work with the assistance of artificial intelligence.

The findings are featured in the Cengage Group’s 2023 Graduate Employability Report, based on two surveys conducted by the online platform Pollfish in June 2023.

• The graduate survey targeted 1,000 U.S. men and women between the ages of 18 and 65 who had completed an education program (i.e., associate, bachelor’s or graduate degree or vocational training or certification) for their perspectives on their recent experience seeking employment.
• The employer survey asked 1,000 U.S. men and women between the ages of 18 and 65 with hiring responsibilities within their organization about their views on determining a candidate’s fitness for a specific role.

Key Finding For Graduates

More than half of the graduates (52%) said the growth of AI makes them question how prepared they are for today’s workforce. They were split about whether they believed their job will be replaced by AI – 46% felt threatened by the new technology, while 55% said their job could never be replaced by AI.

Six in 10 graduates (61%) said they will need to develop or strengthen their digital skills due to AI, and 65% said they were eager for more training on working with AI.

Only 41% of graduates said their program taught them skills needed for their first job, a substantial drop from the 63% who said that in 2022. When it came to the skills they believed were lacking, about a quarter pointed to soft skills instruction. More than half of graduates (58%) said employers needed to work more closely with colleges and other learning programs to develop educational courses or programs that teach students the skills they’ll need in the workplace upon graduation.

Although internships, externships and apprenticeship programs are ideal workplace experiences to help equip students with these skills, fewer than half of grads (47%) said they participated in such programs in this year’s survey, compared with 63% who did so in 2022. Of those who did participate in one of those experiences, more than a third (35%) reported they did not receive any guidance from their school in finding one.

Half of all graduates (49%) say their educational institution should be held accountable for placing them in jobs upon graduation, with graduates of degree programs more likely than non-degree grads to want their institution to be held accountable for employment connections.

Reflecting the ongoing shifts in how employers view entry-level graduates, graduates are becoming less convinced that a college degree is the best signal to employers of the skills they possess, with only 23% believing a degree is the best indicator in 2023, down from 32% in 2022.

On the other hand, the loosening of degree requirements may also be why grads are feeling more confident and qualified to apply for entry-level jobs. Only 33% felt underqualified to apply for entry-level roles in 2023, while 49% and 50% felt underqualified in 2022 and 2021, respectively.

Key Finding for Employers

AI is also affecting employers’ hiring plans. More than half (57%) of employers said certain entry-level jobs – or even entire teams – could be replaced by AI, and 68% believed that many employees will need to reskill or upskill in the next three to five years because of emerging technology.

Nearly three in five employers (59%) reported that the growth of AI had caused them to prioritize different skills when hiring, and 66% said they are now looking for “uniquely human” skills in prospective employees and that previous job experience will become more important in hiring decisions.

Employers strongly agreed (79%) that employees could benefit from training on working alongside AI and other new technologies in their current roles. Additionally, 68% say many of their employees will need to learn new skills in the next three to five years – either to stay up-to-date for their existing role or a new one for those that emerging technologies are likely to make obsolete.

The search for talent remains a challenge. Half of employers (53%) reported still struggling to hire talent in 2023, which was an improvement from 2022 when 65% reported they were having difficulty. As a result of this challenge, almost half of employers (48%) said they are willing to hire individuals who they know will need later upskilling on the job.

A college degree is becoming less important. Only 50% of today’s employers require a 2- or 4-year degree for entry-level jobs, compared to 62% who did so in 2022. More employers in 2023 say they require a skills training credential (33%) compared to 26% who said that in 2022, which also coincides with what grads say – they are seeing more job openings with no degree requirements.

Commenting on the implications of the survey in a news release, Michael Hansen, CEO of Cengage Group, said, “the workplace has changed rapidly in the last few years, and now we are witnessing a new shift as AI begins to reshape worker productivity, job requirements, hiring habits and even entire industries. With new technology comes both new uncertainties and new opportunities for the workforce, and educators and employers must do more to prepare today’s workers for these technological skills.”