AI plans threaten junior hiring as staff left unready

New workforce research from people2people Recruitment suggests employers expect workplace use of AI to reduce entry-level hiring over the next three to five years, while a gap widens between organisational investment plans and employee readiness.

The research found 45% of employers anticipate hiring fewer junior roles within three to five years, compared with 14% who expect to do so in 2026.

Staff feedback, however, suggests many workers do not feel prepared for AI-related change. Almost seven in ten employees (69%) said their employer is not preparing them for an AI-driven future, and a further 15% said the support they receive is insufficient.

The results point to a workforce planning challenge as organisations adopt AI tools and automate parts of day-to-day work. They also add to the debate about how employers maintain early-career talent pipelines when routine tasks shift to software.

"What we're seeing is a capability gap opening up in real time. Employers are investing, but employees say they are being left behind. When 69% of employees say they're not being prepared, and another 15% say what's on offer isn't enough, that's not a future risk, that's a current workforce issue," said Catherine Kennedy, NSW Managing Director, people2people Recruitment.

Investment plans

Employers reported growing intent to invest in AI-related learning and development. Three in four (75%) plan to invest in AI-focused learning and development in 2026. Of those, 13% plan "significant" investment, 41% say they are starting their journey, and 21% report plans for future investment.

Many organisations also expect AI to affect a material share of business activity. The research found 39% of employers anticipate AI will affect more than a quarter of processes. Within that group, 9% expect it to impact more than half of processes.

Respondents identified several barriers slowing adoption. Accuracy concerns ranked highest (64%), followed by cybersecurity (63%). A lack of formal AI policies was also cited, with 38% of employers reporting it as an obstacle.

Kennedy said many organisations have not yet turned adoption plans into practical measures for employees.

"The intention to adopt AI is accelerating, but many organisations haven't yet translated that momentum into practical, day-to-day enablement for their people," she said.

Where AI lands

Early activity appears to be concentrating in areas with established data workflows and measurable commercial outcomes. Employers reported the highest levels of AI activity in data analytics, accounting and finance, and IT.

Data analytics led at 38%, followed by accounting and finance (35%) and IT (35%). Operations and processes came next (33%). Customer experience stood at 31%, while marketing and sales registered 30%.

The pattern suggests a focus on functions with large volumes of structured information, repeatable tasks, and defined service or productivity metrics. It also reflects areas where many employers have already deployed automation and analytics tools in recent years.

Junior roles

The projected reduction in junior hiring over three to five years is one of the sharpest shifts flagged in the research. Entry-level roles often include routine work, administrative processing, and basic analysis-tasks frequently cited as candidates for automation as organisations adopt AI tools across business functions.

Kennedy warned that a sustained pullback in junior recruitment could narrow early-career pathways, and said employers would need to rethink how roles are structured as the content of junior work changes.

"The numbers are a warning signal for early-career talent. When the share of employers expecting to hire fewer junior roles rises from 14% in 2026 to 45% in the next three to five years, we risk narrowing entry-level pathways at exactly the moment we need new capability," she said.

The research also points to broader shifts in job design and workforce composition over the same period. Employers expect growth in new AI-focused roles, more role redesign around AI, and a rise in roles that are suppressed.

In 2026, 15% of employers expect to create new AI-focused roles; over three to five years, that figure rises to 46%. The share expecting to redesign roles around AI increases from 25% in 2026 to 45% over the longer timeframe. The proportion expecting roles to be suppressed rises from 13% to 40%.

Employers also anticipate rising demand for specialist skills. The research found 18% expect demand for specialist skills to climb in 2026, increasing to 38% over three to five years. It also points to a shift in resourcing models, with 19% expecting increased reliance on contract and temporary labour in 2026, rising to 34% over three to five years.

Kennedy said organisations need to adjust early-career pathways as work changes.

"If junior work is increasingly automated, organisations must redesign pathways, not eliminate them, or we'll create a long-term talent bottleneck," she said.