Survey: 1 in 5 US Firms Have Frozen Entry-Level Hiring Over AI

One in Five Companies Have Already Pulled the Plug

A sweeping new survey from Resume.org, conducted in February 2026 among nearly 1,000 U.S. business leaders, paints a stark picture of AI's accelerating impact on the job market. The headline finding: 21% of companies have already frozen entry-level hiring because of artificial intelligence, with many more planning to follow suit before the year is out.

The numbers grow more alarming on a longer timeline. By the end of 2026, 36% of companies say they will have stopped hiring entry-level workers entirely. By 2027, that figure climbs to nearly half (47%) of all companies surveyed. These are not speculative projections from analysts; they represent stated intentions from the business leaders making hiring decisions right now.

Roles Are Already Disappearing Across All Levels

The survey found that AI is not just freezing new hiring; it is actively eliminating existing positions. 12% of companies report that AI has already eliminated entry-level roles at their organization, with another 21% expecting those positions to vanish before December 2026. Combined, roughly one-third of companies anticipate their entry-level workforce will be significantly reduced within the year.

Mid-level and senior roles are not immune either, though the pace is slower. 11% of companies have already experienced AI-driven mid-level role eliminations, with 24% expecting more by year-end. At the senior level, 10% report cuts have already occurred, and 26% expect them by December. The data suggests a wave of restructuring that will reshape the entire corporate hierarchy, not just the bottom rung.

When asked how much AI factored into elimination decisions, 21% of companies cited AI as the sole reason, 19% identified it as the primary driver, and 26% called it one of several contributing factors. Only a third said AI played no role in their staffing decisions.

Over Half of Companies Plan AI-Driven Layoffs This Year

The survey delivers perhaps its most sobering finding on planned layoffs: 51% of business leaders say their company will lay off workers in 2026 specifically because AI is consolidating or eliminating roles. Of those, 29% say AI-driven layoffs have already occurred at their organization, while 22% say they plan to conduct them later this year.

At the same time, companies are rapidly restructuring what they do hire for. 47% are increasing hiring for technical and AI-focused employees, and 48% are recruiting more workers who can effectively use AI tools. The message is clear: the demand is not disappearing, but it is fundamentally shifting toward AI-literate talent.

What Experts Are Saying

Resume.org career advisor Kara Dennison summarized the new reality bluntly: "Employees without AI skills risk being sidelined as technologies augment or replace traditional functions. AI skills matter for two reasons: relevance and leverage."

Some economists urge caution in interpreting the numbers. Oxford Economics' Ben May has noted that some firms may be using AI as a convenient justification for layoffs driven by other factors like past overhiring. Revelio Labs researcher Lisa Simon argues that AI's impact on hiring may actually be larger than its impact on layoffs, as companies quietly pull back job postings without formal announcements.

What This Means for Job Seekers

For entry-level candidates and recent graduates, the implications are immediate. Traditional pathways into corporate careers, from analyst positions to junior developer roles, are narrowing faster than most career guidance accounts for. The survey data suggests that demonstrating AI proficiency is no longer a differentiator; it is becoming a baseline requirement. Job seekers who can show they understand how to work alongside AI tools, from prompt engineering to data analysis with AI assistance, will have a significant advantage in a market where employers are increasingly asking fewer humans to do more with intelligent automation.