AI Job Displacement: Young Workers Face Entry-Level Employment Crisis

The Shifting Sands of Employment

The rise of artificial intelligence is not just a tech story; it's an economic one, particularly for young job seekers. Recent data indicates that AI is starting to reshape the job market, potentially squeezing out entry-level positions typically held by young people.

What Happened

Statistics Canada reported a concerning 14.7% unemployment rate for Canadians aged 15 to 24 in September, a 15-year high excluding the pandemic period. A Stanford University study further highlighted this issue, revealing a decline in employment for early-career workers (22-25 years old) in AI-exposed occupations. Meanwhile, experienced workers and those in less exposed fields have maintained stable or growing employment.

Why It Matters

The implications are significant. Jacqueline Silver, a recent McGill University graduate, spent over a year applying for jobs before landing one, a struggle echoed by her classmates. Generative AI tools, like ChatGPT, are increasingly capable of performing tasks such as writing code, which traditionally served as entry-level opportunities in fields like computer science. This automation threatens to eliminate the first rung on the career ladder for many young people. Hamoon Ekhtiari, CEO of FutureFit AI, notes that junior roles in software development, sales, marketing, and customer service are particularly vulnerable.

Our Take

While AI promises new jobs and opportunities, the immediate impact on young workers is a growing concern. The traditional promise of a stable, long-term career following education is eroding. Companies may need to shift their talent strategies to cultivate young talent instead of solely focusing on short-term gains through automation. Schools also need to better connect students with relevant skills training to prepare them for this changing landscape. Moreover, governments need to proactively help people navigate job transitions.

The Political Angle

Conservative MP Garnett Genuis has criticized the current government for lacking a clear strategy to address youth unemployment. He proposed boosting financial support for education in high-demand fields and incentivizing employers to provide housing for workers. In response, Jennifer Kozelj, spokesperson for the Minister of Jobs and Families Patty Hajdu, stated that the government is acting with urgency to harness AI while ensuring no worker is left behind.

Looking Ahead

The rise of AI in the workplace isn't a future threat; it's a present reality. The challenge lies in adapting to this changing landscape by reskilling the workforce, rethinking education, and ensuring that the benefits of AI are shared more equitably. Failure to address this issue could lead to a generation of young workers struggling to find their footing in an increasingly automated world. Cultivating young talent and long-term opportunities is more important than short-term gain through automation, to ensure there is a place for everyone in the changing workplace.