AI reshapes workforce: Two-thirds of organisations expect steep decline in entry-level hiring

Organisations worldwide are preparing for a significant shift in workforce composition, as new findings from IDC and Deel reveal steep declines ahead for entry-level hiring and rapid changes in job roles driven by AI.

Two in three organisations (66%) expect to reduce entry-level recruitment over the next three years, and 91% say roles are already changing or disappearing due to AI—signals of a widening skills gap and growing strain on future leadership pipelines.

The IDC InfoBrief, AI at Work: The Role of AI in the Global Workforce, draws insights from 5,500 business leaders across 22 markets. It highlights the mounting challenges of talent development as organisations deploy AI at scale: almost all surveyed organisations (99%) are using AI, with nearly 70% already fully integrating it into operations.

Nick Catino, Global Head of Policy at Deel, said the shift is reshaping employees’ foundational expectations. “AI is no longer emerging, it’s fully here,” he said. “Entry-level jobs are changing, and the skills organisations look for are too. Both employees and organisations need to adapt quickly. This isn’t about staying competitive, it’s about staying viable.”

With AI taking over repetitive and knowledge-based tasks, concerns extend beyond job displacement to the erosion of on-the-job training. Singapore stands out: 75% of organisations report rising difficulty in developing future leaders due to the decline in early-career opportunities, above the global average of 71%. 70% also say junior employees now have fewer developmental pathways at work.

Restructuring is already underway across sectors. Nine in 10 organisations have experienced role changes or displacement, and one-third have undergone significant workforce redesign to accommodate AI. Markets such as New Zealand, Argentina and the US report the highest displacement levels. Singapore records the sharpest job losses in Asia at 48%, while China leads in role redesign—supported by extensive national reskilling initiatives.

To keep pace, organisations are investing heavily in training, with 67% globally and almost 75% in Singapore adopting AI-focused upskilling programmes. However, the report noted persistent barriers: low employee engagement, budget constraints and a scarcity of expert trainers. Only 3% of organisations have a cross-functional team coordinating reskilling efforts, and nearly a third remain unclear about internal ownership of the process.

READ MORE: Deel report warns mounting financial pressures on Hong Kong workforce, calls for payroll innovation

As job requirements evolve, traditional academic credentials are losing ground. Only 5% of global employers—and just 2% in Singapore—still consider university degrees essential for entry-level roles. Instead, organisations prioritise technical certifications, critical thinking and strong communication skills. Organisations in Singapore place even higher value on these capabilities, with many also emphasising candidates’ portfolio of work.

AI adoption barriers remain significant. Nearly half of organisations cite legacy systems as a major obstacle, while 43% report shortages of AI-skilled talent. In response, organisations are offering salary premiums—including up to 100% more for specialised AI roles—as well as incentives such as access to advanced tools and clearer career pathways.

The study also identified a widening governance gap: only 16% of organisations say they are very familiar with local AI regulations, and fewer than one in four find current rules clear or supportive. Internal governance is similarly weak, with most organisations relying on informal guidelines for employee use of AI.

Dr Chris Marshall, Vice-President for AI in Asia-Pacific at IDC, said the organisations best positioned to succeed will be those that “unite automation with a human-centred vision,” ensuring that upskilling, entry-level opportunities and governance evolve in tandem with technological progress.