This story from Tim Duggan in the SMH last November, got me thinking. Are entry level jobs really on the way out due to AI? In Adelaide they are very hard to get. The state government is probably the best place to start or a council.
Cast your mind back to the first job you had. It may have been decades ago, or closer in time, but I bet you can still remember some of the tasks you did because no one else wanted to. Data entry, answering phones, transcribing, or learning the basic skills of the job from the ground up.
But now entering the workforce from the bottom is under threat from an underreported crisis we’re not talking nearly enough about: early career positions appear to be vanishing, and nothing is replacing them.
There are fewer jobs available for workers who have recently graduated from university, with the 2024 Graduate Outcomes Survey finding that full-time employment for undergraduates fell from a high of 79 per cent in 2023 to 74 per cent last year.
At the same time, graduates who worked part-time but wanted to add more hours increased from 14 per cent to almost 18 per cent over the last three years.
On a national scale, youth unemployment has been steadily increasing to 10.5 per cent in September, the highest level since November 2021.
The Jobs Availability Snapshot found that entry-level jobs had declined over the last decade and now accounted for less than 11 per cent of all positions advertised last year.
Are younger workers the canaries in the coalmine for how AI might affect all our future workplaces?
Now, some of these trends are still fresh and questionable, and might not seem much in isolation, but once you start plotting them all together they paint a bleak collective picture.
There are several overlapping reasons for this displacement, such as economic uncertainty and changes to how businesses are hiring, but the biggest issue is the rise of AI and automation that can perform many of the tasks that were traditionally done by entry-level workers.
And if we don’t address it now, this will easily snowball into a wider economy-sized problem.
That’s what some researchers at Stanford University found recently when they concluded that widespread adoption of generative AI meant that early career workers aged 22 to 25 in the most AI-exposed industries have seen a 13 per cent relative decline in employment.
Those occupations included software developers, customer service representatives, accountants, receptionists, administration assistants and anyone else that does repetitive tasks that can easily be automated.
What can we do about this?
The first thing is we need to talk about it in the open, interrogating the causes instead of letting it cut through our workforce without a sound. There are three levels it needs be addressed at – by businesses, government and individuals.
Within our companies, we need to actively cultivate entry-level pathways into every industry. This might include formal graduate programs, internships or apprenticeships, with an intentional focus on how the next generation is not overlooked.
At a government level, we need economic incentives for businesses that hire entry-level staff to encourage participation. Higher education should prioritise real-world work placements and tighter industry collaboration so that undergraduates emerge fully equipped for the workplaces of tomorrow.
Finally, individuals need to identify if you’re at risk and pre-actively brush up on technology to complement rather than compete. You should also plan ahead for longer periods to find suitable employment, and use every avenue available to get a foothold in your chosen career.
The displacement crisis is serious but solvable, as long as we’re talking about it. If not, a whole new generation might have the first rung of the career ladder taken away before they’ve even had a chance to reach for it.
This is a snapshot from Wellable:
- The perception gap: While nearly half of CEOs believe AI could replace most of their job functions, only 20% of employees agree. Nevertheless, employees increasingly recognize that failing to acquire AI skills could make them replaceable.
- Underlying concerns: Over half of entry-level positions are estimated to be automated within the next five years, amplifying job security anxieties among employees. Meanwhile, executives worry about their own AI proficiency and the evolving skill set of their workforce, fearing potential obsolescence in an AI-driven corporate landscape.
- The upskilling challenge: Executives and employees alike acknowledge the urgency to upskill. Yet, existing in-house learning and development efforts have fallen short, pushing many employees to seek external learning resources over the past year.
- Cultivating an AI-ready workplace: Crafting a forward-thinking AI strategy should prioritize both operational efficiency and alignment with the company’s broader goals. Embracingdiverse perspectives, addressing employee concerns, and setting realistic expectations are foundational in establishing a shared vision—one that fosters purpose and drives collective efforts toward success.
- Developing effective upskilling plans: Effective AI learning and development programsshould be role-specific. This alleviates the overwhelming feeling that accompanies the vastAI knowledge spectrum and ensures targeted upskilling. Monitor progress and promote a culture of continuous learning, reminding employees that AI skill acquisition is a marathon, not a sprint.