Entry-level job opportunities at small and medium-sized enterprises are shrinking as companies increasingly favor experienced workers who can contribute immediately.
An analysis of more than 4 million job postings from SMEs between 2023 and 2025 by recruitment platform Saramin found that only 13.9% of positions were open to entry-level applicants last year—the lowest in three years and down 4.2 percentage points from 18.1% in 2023.
The decline was evident across industries. The service sector saw entry-level hiring drop to single digits at 8.7% last year, down from above 10% previously. The spread of AI and automation systems has reduced demand for new hires by replacing some entry-level roles, despite traditionally smaller gaps between new and experienced workers in services.
Meanwhile, experienced-hire positions continue to expand. In the IT and telecommunications sector, 57.3% of job postings required prior experience. Including positions open to both entry-level and experienced candidates, approximately 70% of all postings accepted experienced applicants. Construction and manufacturing showed similar patterns, with nearly half of companies preferring experienced hires.
"Even when we post jobs open to both entry-level and experienced candidates, we often prioritize experienced applicants in the actual hiring process," said one SME human resources manager. "The barriers job seekers face are likely higher than the numbers suggest."
The preference for experienced workers is expected to intensify as AI adoption spreads. Companies increasingly favor "experienced fresh graduates"—new hires with practical work experience—further raising barriers for those without it.
"We need educational programs to strengthen entry-level candidates' capabilities before hiring," said Koo Jung-woo, a sociology professor at Sungkyunkwan University. "Universities should expand practical training and problem-solving courses that can substitute for internships, helping new graduates demonstrate their abilities to employers."