Recent findings indicate that AI is significantly impacting job opportunities for Gen Z.
A new study reveals that job openings for those aged 22 to 25, who form a key segment of Gen Z, have dropped by 13% since 2022 in sectors vulnerable to AI advancements. This trend coincides with the launch of ChatGPT in 2022, which initiated a widespread push in corporate America to integrate AI to enhance efficiency and modernize operations.
Major U.S. companies like Amazon, UPS, and Target have laid off thousands this year while increasing their automation efforts.
IBM announced plans to lay off about 1% of its workforce, roughly 2,700 individuals, during this quarter.
Analyst Dan Ives from Wedbush Securities commented that “it’s disproportionately hurting American jobs, particularly in data entry and routine tasks.” He also suggested that Gen Z might experience greater effects compared to older generations.
With companies spending hundreds of billions on AI to gain a competitive edge over China and reduce costs, the downsides include job losses, especially in consulting, accounting, finance, and entry-level positions that are often sought by Gen Z graduates.
According to a Stanford University report, the landscape for young workers in white-collar roles is in “significant” decline. However, Ives noted that AI might create jobs in fields like software engineering and manufacturing.
He mentioned, “AI definitely has a role to play in a tough job market, especially at entry levels,” pointing out a potential reluctance from companies to acknowledge AI’s impact.
This year has seen major tech corporations announce substantial layoffs without explicitly attributing these cuts to AI.
Last week, Amazon began a reduction of 14,000 jobs as part of a bid to “reduce bureaucracy,” planning a total of 30,000 corporate job cuts, which is around 9% of its global office workforce.
The New York Times has reported that Amazon aims to automate its warehouses significantly in an effort to avoid over 500,000 jobs in the upcoming years, with aspirations to automate 75% of its operations.
While Amazon has denied some of these claims, it does plan to hire 250,000 additional employees for the holiday season but didn’t specify how many would be full-time roles.
UPS recently announced plans to cut 34,000 jobs, while Target is laying off around 1,800 staff members.
Reports indicate that nearly 100 million jobs could potentially be lost due to AI and automation, and the situation may worsen over the next decade, according to insights from Sen. Bernie Sanders.
On a more optimistic note, healthcare appears to be a resilient sector against AI-related layoffs, and some Gen Z individuals might consider moving into fields less affected by technological changes.
Job roles such as home health aides are predicted to remain relatively secure, with approximately 740,000 new positions anticipated over the next decade. This role is accessible, typically requiring only a high school diploma and minimal training.
It is projected that around 1.9 million healthcare jobs will be available in the U.S. within the next decade.
While higher-paying roles like nurses and physician assistants often require advanced degrees, they offer more long-term stability. Notably, even experts like Google DeepMind CEO Demis Hassabis acknowledge that healthcare jobs are quite immune to AI disruption.
He remarked, “You don’t want a robot nurse. There’s something particularly human about the human empathy aspect of that care.”
