AI 'Eliminating First Rung' of Job Ladder Concerns Reserve Bank
New Zealand's Reserve Bank is sounding an alarm about the impact of artificial intelligence on entry-level jobs. In its monetary policy statement, the bank noted that businesses may be prioritizing efficiency and technology investment over hiring young people, instead opting for AI tools to fill roles.
Reserve Bank Governor Anna Breman said while she didn't think this would be a problem in the medium term, it could be an issue in the short term, particularly for young people who already face high unemployment rates. Youth unemployment is nearly three times that of the wider working-age population.
University students and professors are sounding the alarm about the long-term implications of AI replacing entry-level jobs. Associate Professor Paula O'Kane said it's a 'big issue' and employers need to start thinking about it now, rather than waiting until it becomes a major problem in 5-10 years.
Fortitude Group Recruiter Hayley Pickard agreed that losing the first rung of the employment ladder would create a succession issue, as young people learn valuable skills and experience through entry-level positions. Auckland University professor Rod McNaughton said while AI may not eliminate jobs outright, it could remove some of the first rungs of the career ladder.