In other words, while AI may be reshaping the labor market, it is not eliminating the need for talent. “We are seeing a shift toward the type of talent employers need and the expectations they have for impact,” said Kye Mitchell, head of Experis US.
Though hiring for entry-level jobs is under pressure as AI absorbs more routine work, that doesn’t eliminate opportunity, she said. “It changes the expectations. Employers now expect candidates to come in with hands-on experience, AI familiarity, and the ability to contribute faster.”
While reductions in headcount are real, the savings from cutting those jobs will reappear elsewhere in hiring for other roles or tasks, said Deepak Seth, senior director analyst at Gartner.
For example, though Claude Code might help IT leaders reduce the number of developers they have on hand, one faulty software rollout could lead to new hiring to fill gaps, Seth said. “Maybe you need to hire more quality testers in another group. Maybe you need to hire more people to train people on how to use these tools,” Seth said.