“It is very frustrating,” says Hina Touma, who graduated this spring from Toronto University with a degree in business administration. “Out of 100-plus job applications, I had four job interviews, and out of those four, I got ghosted from two of them.”

If getting into premier colleges and maintaining a certain CGPA wasn’t already difficult, the end result—getting a job—now seems a task as well for young, educated workers in the Middle East.

Even newly minted MBAs from elite programs are struggling to find work. As companies lay off workers and adopt AI coding tools, computer science graduates are struggling too. 

Job seekers are competing for fewer openings, and hiring is sluggish. For new grads, the market simply isn’t strong.

“This is quite evident from the growing number of job/internship applications we have been getting in recent years,” says Bhanu Vittalam, Founder and CEO of Sirius Capital. “Major recruiters have reduced their intake and regular recruitments at the entry level have also been impacted.”

That’s a big turnaround from recent years.

“Last year’s graduates are entering a more challenging job market than graduates did in the years immediately preceding the pandemic and during the initial post-pandemic hiring surge,” says Maria Vyshegorodtseva, Head of HR at Tumodo, a travel platform.

Economic uncertainty, tech sector cooldown, intense competition, rapid technological change causing skills mismatches, and the automation of entry-level tasks have created significant headwinds, she adds.

“While opportunities exist, particularly in high-growth sectors requiring specialized skills, securing that first graduate job is more challenging and requires greater preparation, adaptability, and targeted skill development.”

Tech companies are toughening entry-level tests, and it’s clear that fresh graduates need to come as pre-trained as possible. They need to understand business and client requirements instead of basic coding, say those closely watching this space.

Non-tech freshers are expected to upskill themselves through self-study and external certifications.

One tech executive recently told me his company had stopped hiring fresh software engineers because lower-level tasks could now be done by AI coding tools. Another told me that the start-up he works for now has a single data scientist to do the kinds of tasks that required a team of 25 people at his previous company.

A recent conversation with a tech executive revealed that his company has ceased hiring new software engineers because AI coding tools can now handle lower-level tasks. Another mentioned that at his start-up, just one data scientist is now responsible for tasks that previously required a team of 25.

Anecdotes like these don’t add up to mass joblessness, of course. But alarms are starting to go off.

So, what does it mean to be a fresh graduate in these times?

MARKET IS COMPETITIVE

“There’s no doubt that fields like transformation consulting, data analytics, and sustainable finance are opening exciting doors for fresh graduates, but the market is shifting quickly and becoming increasingly competitive,” says Eyhab Abdeen, Chief People Officer at PwC Middle East.

While technical skills remain essential, employers are increasingly focused on qualities that aren’t always taught in the classroom: curiosity, adaptability, and the ability to collaborate across cultures and disciplines, adds Abdeen. “These, coupled with human-centric skills such as communication, emotional intelligence, and critical thinking, are emerging as powerful differentiators in today’s workplace.”

Experts say new graduates, especially those who rely solely on a degree, are having a harder time finding a job. Many industries have little use for their skills, especially when five people with ChatGPT could do the work of 20 recent grads. They are rapidly phasing out their jobs in favor of automation. 

“We’ve hired interns and fresh grads who hit the ground running not because of their grades, but because they’ve built projects, experimented with tools, and know how to get things done,” says Hamza Khan, co-founder of Letswork, a workspace platform. “The ones who stand out aren’t waiting for instructions; they’re already learning AI tools, automating tasks, and showing output from day one.”

Concurring that the job market is tough and competitive, Aws Ismail, Director at Marc Ellis Recruitment & Training Academy, says companies are increasingly looking for candidates “with practical, job-ready skills, almost plug and play.” 

“For fresh grads, internships, certifications, and work/project experience have become almost essential. In the UAE, we have also seen that Emiratisation policies are also influencing entry-level hiring patterns, creating more opportunities for Emirati nationals, and that means expat fresh grads need to be even more proactive in differentiating themselves to secure new opportunities.”

Also, some businesses are so focused on tomorrow’s profit margin that they’re less willing to hire large numbers of entry-level workers, who often take time to learn on the job.

IMPACT OF AI

It’s also worth noting that while companies are increasingly posting “fake job listings,” advertising for roles they aren’t actively hiring for, the actual number of job openings has plunged on job platforms for entry-level workers. Many point out that this emerging crisis appears to be fueled, at least in part, by rapid advances in AI capabilities. 

Remember, Anthropic’s chief executive Dario Amodei recently predicted that AI could eliminate half of all entry-level white-collar jobs within five years.

However, even if AI doesn’t take all the entry-level jobs right away, there are concerns.

Demand is strongest in AI, data analytics, cybersecurity, and cloud skills, and also in fintech, compliance, and digital transformation roles within finance, Ismail says, “But more traditional and junior roles have reduced in demand based on the emergence of AI tools that can do a lot of the work at a fraction of the price and time.” 

Even if there’s no clear evidence of job displacement due to AI just yet, high spending on AI infrastructure and emerging technologies is impacting spending on new hires. 

“Capital allocation toward AI infrastructure, cloud computing, GPU clusters, proprietary large language models, and automation tools is actively diverting budgets away from human talent acquisition, particularly for entry-level roles,” says Vyshegorodtseva.

“We also have seen that many of our clients are prioritizing AI and tech infrastructure investments, and that has a direct impact on slowing down noncritical hiring, especially for junior roles that might be automated soon,” says Ismail, adding that many companies are upskilling their existing staff in AI tools rather than bringing in large cohorts of new graduates.

Khan says Letswork is investing more in AI-driven tooling than ever—customer service, marketing, QA, outreach. “Roles that might’ve gone to two or three junior hires are now handled with automation plus one smart operator.”

AI spending is a deeper, strategic, and more structural shift. “Capital is flowing into talent aligned with AI, not away from people entirely. The real shift is toward smarter, tech-augmented hiring,” says Vittalam.

DOES COLLEGE PAY OFF?

At a time when the share of job postings seeking workers with a college degree has declined, does college still pay off? Yes, but only if paired with career-focused skill building and experience. A college degree is a baseline, not a differentiator. 

“A degree is not as important as work experience, but it is still valuable. However, it’s no longer the differentiator it was five years ago, especially in markets like the UAE, where employers are looking for proof of skills and adaptability,” says Ismail. “The return on investment depends heavily on the field of study, the university’s reputation, and whether graduates complement their degree with industry certifications or practical experience.”

What matters more, Khan says, is what grads do with their time—whether that’s projects, internships, or real-world experimentation. “Those who explore what’s possible beyond the classroom tend to stand out.”

At the same time, non-traditional learning paths are becoming increasingly popular. Tsovinar Kartashyan, HR manager at Syrve MENA, says, “There are many ways to build skills and competencies outside of a formal degree, from online courses to project-based learning, which can offer strong career advantages alongside, or even instead of, a traditional college education.”

To be clear: the return on investment in college has become more nuanced. “Five years ago, a degree was a clearer path to upward mobility,” says Vittalam. “Today, with rising tuition fees and evolving job markets driven by tech and AI, outcomes vary more widely by field and institution. That said, college continues to pay off on average—especially in technical, healthcare, and finance-related domains.”

IS SLOW HIRING A SIGN OF SHORT-TERM DRAG?

Finally, is slow hiring a sign of short-term drag, medium-term changes to the value of a degree, or long-term shifts with AI? 

Well, experts say it’s a mix. In the short term, it’s macro uncertainty, and hiring cycles are longer, and companies are being cautious and selective; in the medium term, it’s reevaluation of educational ROI. 

“Employers want proof of real-world readiness more than anything else,” says Ismail.

And, long-term points to a deeper structural shift driven by AI.

“AI is reshaping how organizations function, reducing demand for some roles while creating new ones,” says Vittalam.“The hiring slowdown is less about decline and more about transformation in talent and technology dynamics.”

Consider, then, that if college graduates are entering an economy that is relatively worse compared to past years, what is crucial is that they need to come with niche skills, internships, and the ability to show adaptability with AI. Ismail adds,“They must use AI as an enabler rather than just a tool to do work for them, to stand a much better chance of getting jobs.”

The real edge, according to Abdeen, lies in blending soft skills with digital fluency and a commitment to lifelong learning. “Because employers aren’t just filling roles for the present, we’re investing in individuals with the potential to grow and lead.”