AI cuts entry-level jobs, raises skill bar, Spark Admission survey reveals

MASSACHUSETTS, UNITED STATES — A new Spark Admissions survey of 84 C-suite executives finds that artificial intelligence (AI) is fundamentally changing how companies approach early-career hiring.

While 52% of firms report AI has eliminated some entry-level roles, the majority aren’t abandoning recent grads—instead, they’re raising expectations. 

More than half of executives (55%) say their hiring of college graduates is stable or increasing, but they’re looking for more than just technical chops.

“These findings challenge the heavy emphasis on technical training that has dominated educational discourse,” said Rachel Rubin, co-founder of Spark Admissions and doctorate holder from Harvard University. 

“While technical competence remains important, students who develop strong communication skills alongside their domain expertise will have a significant advantage in this transformed job market.”

According to the survey, 51% of executives cited verbal communication and presentation abilities as the top deficiency among college grads, followed closely by problem-solving and critical thinking (50%).

Soft skills now a hard requirement

The findings challenge the long-standing emphasis on technical training. As entry-level jobs evolve beyond traditional training roles, companies expect new hires to hit the ground running with higher-order capabilities. 

“Universities and students need to recognize that soft skills aren’t secondary—they’re increasingly the primary differentiator for success,” Rubin added.

Academic credentials still matter: 83% of executives consider GPA at least somewhat important, and over half (51%) view university prestige as a critical factor. Many companies reinforce this bias through preferred school lists, which still influence who gets through the door.

Today’s grads viewed more favorably

Despite concerns over the pandemic’s effect on education, 57% of executives believe today’s graduates are more prepared than their pre-pandemic counterparts, while just 20% feel otherwise. 

The perception suggests students have adapted and potentially gained resilience and digital fluency that align with today’s work environments.