Artificial Intelligence (AI) was widely expected to become one of the biggest threats to entry-level hiring, with several tech leaders warning that routine junior roles could eventually be automated as companies adopt AI-driven tools to improve efficiency. However, a recent study suggests that the real challenge may not be AI itself, but the difficulties created by work-from-home (WFH) environments in mentoring, supervising, and developing early-career employees.
Researchers Peter John Lambert, a postdoctoral fellow at the London School of Economics, and Yannick Schindler, senior research economist at the Ellison Institute of Technology, analysed millions of hiring records and job postings across the US, UK, Canada, and Australia between 2017 and 2025 to understand evolving employment trends. According to their findings, “WFH exposure is a stronger predictor of the decline in relative early-career hiring.” The researchers also argue that earlier assumptions about AI-driven job losses may be misinterpreting overlapping trends in the labour market.
When AI exposure and remote-work exposure were examined separately, both appeared to correlate with reduced entry-level hiring. However, when analysed together, the impact of remote work stood out more strongly than AI. The study highlights organisational challenges as a key factor, noting that remote work increases the cost of supervision and slows on-the-job learning for junior employees.
The authors further explained, “WFH has been shown to raise the cost of supervising and monitoring workers, and can slow on-the-job learning. These organisational frictions can erode the value proposition of investing in early-career talent.” The decline was more pronounced in roles that can be performed remotely, compared to those requiring in-person presence. By 2025, remote-friendly jobs reportedly saw a 4–5% drop in entry-level hiring compared to hybrid roles.
The study also found that entry-level hiring began to decline sharply after 2022, with overall US hiring for freshers down by nearly 29% compared to pre-pandemic levels. While AI continues to influence workforce dynamics, researchers suggest it may be premature to conclude that it is the primary driver of reduced entry-level opportunities. Instead, they emphasise the need for companies to rethink training, supervision, and skill development in remote and hybrid work environments.
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