AI-Driven Job Market Woes: Young People Face Bleak Future

The job market for young people is facing a bleak picture, with job vacancies plummeting by 45% since 2022. According to research from the Work Foundation at Lancaster University, over one-third of employers have reduced entry-level jobs in the last year alone.

This decline cannot be solely attributed to AI, as remote working and government policy decisions also play a role. However, analysis by the Bank of England suggests that online job adverts have fallen fastest in occupations most susceptible to automation, such as customer service and administrative roles.

Firms are increasingly using AI to perform tasks previously handled by junior staff, such as summarizing meetings and producing routine reports. This shift could lead to a diamond-shaped organizational structure, with fewer junior workers and a bulge of experienced staff in the middle.