A new study suggests that a slowing job market is having a greater impact on young workers than artificial intelligence, challenging the widespread belief that AI is the primary threat to early-career employment. Researchers found that reduced hiring by employers is making it more difficult for graduates and first-time job seekers to secure work.
Many companies have become more cautious about recruitment due to economic uncertainty, higher borrowing costs, and slower business growth. As a result, entry-level positions have become more competitive, leaving many young people struggling to gain valuable work experience.
While artificial intelligence is changing the workplace and automating some routine tasks, the study concludes that current hiring trends pose a more immediate challenge. Employers are focusing on experienced candidates, making it harder for younger applicants to enter the workforce.Economists warn that prolonged weak hiring could have lasting effects on career development, earnings, and future employment opportunities for an entire generation.
They recommend increased investment in job training, apprenticeships, internships, and skills development to help young workers adapt to changing labour market demands.The report also highlights the importance of government policies that encourage business investment and job creation.
Researchers believe that improving hiring conditions will have a greater positive impact on youth employment than concerns about AI alone, although technological change will continue to reshape the workforce in the years ahead.