Report: Cengage Group 2023 Graduate Employability Report: AI Joins the Workforce

• Artificial intelligence is transforming the world of work, but how does it affect the employability of graduates and the hiring practices of employers? Find out in this report by Cengage Group, the leading education and technology company.
• If you want to learn more about the skills, attitudes, and expectations that will help you succeed in the AI-driven economy, read the summary report here and discover how you can prepare yourself for the future of work.

Recommendation

New AI developments are reshaping the world of work. Both employers and graduates need to learn how to navigate this evolving landscape. While there’s still much uncertainty as to the extent of the changes AI will bring, Cengage Group’s 2023 Graduate Employability Report offers a helpful overview of important employment trends, such as the shift toward skills- and experience-based hiring, and challenges new graduates face. As the results suggest, higher education institutions have some catching up to do in giving their students the knowledge and preparation required to land their first jobs.

Take-Aways

• The rise of AI in the workplace makes digital skills more critical than ever.
• Skills-based hiring is becoming more common as employers struggle to fill roles.
• Higher education institutions should do more to prepare students for today’s workforce.

Summary

The rise of AI in the workplace makes digital skills more critical than ever.

Generative AI is changing the way both graduates and employers define workforce readiness. Cengage Group’s survey of 1,000 employers revealed that 57% see AI taking over many entry-level job functions and augmenting most other roles in the future. This outlook has hiring managers looking for “uniquely human” skills in potential new employees, including emotional intelligence and communication and negotiation skills.

“More than half [of graduates] say competition from AI has them questioning how prepared they are for the workforce.”

Almost 80% of employers would encourage employees to develop digital skills that prepare them for working alongside AI. Of the 1,000 new graduates surveyed, however, only 61% see developing their digital skills as essential, and over half state that they’re certain that AI couldn’t do their job. At the same time, just over 50% admit that the rise of AI has left them less sure about how well-prepared they are for joining the workforce.

Skills-based hiring is becoming more common as employers struggle to fill roles.

More than half of employers reported having difficulty filling roles within their organizations in 2023. Almost 50% are now open to hiring candidates who fulfill some, but not all, job requirements and to helping them develop the necessary skills while on the job.

“AI may be what the working world needed to kick-start the shift toward skills- and experience-based recruitment.”

The percentage of employers requiring a two- or four-year degree for entry-level positions decreased, in general, from 62% in 2022 to 50% in 2023. The technology sector saw the most significant decline in this area: 81% of employers reported degree requirements for entry-level roles in 2022, but only 43% in 2023. Those who still ask for a degree particularly value the discipline graduates develop when studying for a degree. Yet, many employers state that skills training and real-world experience matter more in hiring decisions than college degrees.

Higher education institutions should do more to prepare students for today’s workforce.

Only 41% of the surveyed graduates felt that their study program had provided them with the skills needed for their first job – down from over 60% in 2022. Missing skills include, in particular, soft skills, digital skills, and people and time management skills.

“Half of all graduates say their educational institution should be held accountable for placing them in jobs upon graduation.”

Fewer students participated in work experience opportunities, such as internships or apprenticeships, in 2023 compared to the previous year. Of those who did find such opportunities, 35% said their institutions did not play any role in finding them.

Nearly half of those surveyed said their educational institution should help them find a job upon graduation. Students also want closer collaboration between academic institutions and employers, such as developing learning programs to teach students the skills needed to land a job.

About the Author

Cengage Group is a global educational technology company.

Genres

business, education, technology, sociology, psychology, economics, statistics, journalism, career development, and public policy

Review

The report [Cengage Group 2023 Graduate Employability Report: AI Joins the Workforce] explores how the rise of artificial intelligence (AI) has impacted the job market, the skills employers look for, and the confidence of graduates entering the workforce. The report is based on a survey of 1,000 graduates and 1,000 employers in the U.S. and reveals some key findings, such as:

• Half of the graduates feel threatened by AI and question their workforce readiness.
• 59% of the employers say AI has caused them to prioritize different skills when hiring, especially “soft skills” that are uniquely human.
• Half of the employers have dropped degree requirements for entry-level roles and are more open to skills-based hiring and upskilling.

The report is well-written, informative, and relevant to the current trends in the labor market. It provides insights into the challenges and opportunities that AI presents for both employers and graduates. It also offers recommendations for educators and policymakers to better prepare the workforce for the future. The report uses clear language, charts, and graphs to present the data and analysis. The report is supported by credible sources and references.