Entry level IT jobs decline as AI tools automate coding and testing tasks, reducing demand for fresher roles in the IT sector.

Entry level IT jobs fall 20–25% as AI shifts hiring

Priyanshu Kumar
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Priyanshu Kumar
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According to Mint (Livemint) “Entry-level IT roles down 20–25% as AI pushes India toward specialised hiring”, published on April 15, 2026, Entry level IT jobs are reducing as companies adjust hiring to match AI-driven workflows and changing project requirements.

What changed in entry level IT jobs

Entry level IT jobs are declining as companies reduce hiring for routine roles across software services. Tasks such as testing, basic coding, debugging, and documentation are increasingly handled by AI systems. These functions earlier formed the foundation of entry-level work for fresh graduates.

Companies now require fewer junior engineers for the same output. As a result, project teams are becoming smaller, and responsibilities are shifting toward experienced professionals.

Workforce transformation India reshapes hiring

Workforce transformation India reflects a clear shift from volume hiring to skill-based recruitment. India’s IT sector earlier relied on large fresher intake to execute projects at scale. However, AI tools now complete repetitive tasks faster and with fewer errors.

This change reduces dependence on entry-level roles. Therefore, companies are focusing on hiring candidates with specialised skills in AI, data, and system design instead of generalist freshers.

Impact on entry level IT jobs and freshers

Entry level IT jobs face pressure because they involve repetitive and rule-based work. Roles such as software testing, support engineering, and maintenance are most affected by automation. These tasks match the strengths of AI tools.

This shift reduces opportunities for fresh graduates entering the workforce. It also changes career pathways, as fewer entry points are available in traditional IT roles.

Data highlights and industry signals

An analysis by EY estimates a 20–25% decline in entry-level IT roles due to automation. Meanwhile, NASSCOM reported workforce growth of 2.3% in FY26, showing slower hiring despite industry expansion.

Industry estimates also show that AI can perform 20–40% of common technology tasks. These include writing code, generating test cases, and managing documentation, which were earlier handled by junior employees.

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