A new study challenges the widespread belief that Artificial Intelligence (AI) is the primary threat to entry-level jobs, instead pointing to the complexities introduced by work-from-home (WFH) models. The research indicates that remote work environments are having a more visible and immediate impact on the hiring of junior employees than AI automation.
Conducted by Peter John Lambert from the London School of Economics and Yannick Schindler from the Ellison Institute of Technology, the study meticulously examined millions of hiring records and job postings across the US, UK, Canada, and Australia from 2017 to 2025. Their findings suggest that while both AI exposure and remote work exposure are linked to fewer entry-level hires, WFH emerges as a stronger predictor of this decline when both factors are analyzed concurrently.
Organizational Challenges Impact Early-Career Hiring
The core of the problem, according to the researchers, lies in the organizational frictions inherent in remote setups. Work-from-home arrangements can significantly increase the cost and complexity of supervising and monitoring new workers. Furthermore, they can impede crucial on-the-job learning, which is vital for the development of early-career talent. These challenges, the study argues, diminish the value proposition for companies to invest in fresh talent.
Previously, many studies on job displacement by AI may have misinterpreted data due to the simultaneous rise of remote work. By isolating the effects, Lambert and Schindler found that the impact of WFH on junior hiring was more pronounced.
Decline in Remote-Friendly Entry-Level Roles
The study specifically highlighted a notable drop in junior hiring for jobs that can be performed remotely, compared to roles requiring in-person presence. By 2025, remote-friendly positions saw a 4–5 percentage point decline in hiring for freshers when contrasted with hybrid roles. This trend contributed to a significant overall reduction in entry-level hiring post-2022, with US hiring down by 29% compared to pre-pandemic levels.
While AI's long-term impact on the job market remains a concern, the study concludes that it may be premature to attribute current declines in entry-level hiring primarily to AI. Instead, it underscores an urgent need for companies to re-evaluate and innovate their training and mentorship strategies for new hires within remote or hybrid work frameworks.