The Young Are Being Battered by AI as Hiring Shifts to Older Workers
The job market for young workers aged 22 to 27 deteriorated significantly in the past year, with AI adoption cited as a contributing factor by Fed Chair Jerome Powell. A global survey of CEOs reveals a growing trend of reducing junior roles and shifting hiring toward mid-level and older workers, driven by AI integration. While most companies have not yet seen strong returns on AI investments, some advanced adopters report increased value in entry-level talent despite the broader hiring downturn.
- ▪The job market for 22-to-27-year-olds worsened in the first quarter, reaching its weakest point since the pandemic's peak.
- ▪According to a Oliver Wyman survey, 43% of CEOs plan to reduce junior roles, up from 17% the previous year.
- ▪Only 27% of CEOs reported that AI investments met or exceeded expectations, down from 38% the year before.
- ▪Some advanced AI adopters are seeing increased value in entry-level talent, contrary to the broader trend of cutting junior hires.
- ▪Seventy-four percent of CEOs are freezing or reducing headcount, with the most aggressive cuts in tech, media, and telecommunications sectors.
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Job prospects for early-career workers took a turn for the worse last year. In the first quarter of the year, the job market for 22-to-27-year-olds “deteriorated noticeably,” according to a New York Fed report. Later, Fed Chair Jerome Powell admitted that AI might be partly to blame. Companies that would have ordinarily hired recent graduates are now increasingly trying to have AI assistants automate that work, Powell explained. By the end of the year, the job market for these young workers was at its harshest since the worst days of the…
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