Time to talk numbers
Time to talk some numbers
How Artificial Intelligence is Reshaping the Job Market and Threatening Young Workers
Artificial Intelligence (AI) is no longer a futuristic concept and it's rapidly becoming one of the most significant disruptors in the modern job market, particularly for young professionals and recent graduates.
The rhythm is way fast and We humans are still calculating the immediate benefits vs side effects.
In a stark warning, Bank of America’s Hartnett reported on August 10 that the U.S. graduate unemployment rate soared from 4.0% in December 2023 to 8.1% in the summer of 2025.
But we were promised that AI will make our life better.
A lot of Software engineers find themself in the layoffs, so do suddenly some 30 years old experienced programmers.
The point is that the education system is outdated and youngsters are still trapped loosing time studying some futile programs only to find out that they are graduated in matters that AI can execute in seconds.
Again the point is that the AI should be used to open new positions while eliminating some and this transitions should be of mutual benefits. This protocol will give us also the time to understand better what is happening and not let all in the hand of destiny.
Here come to play the role of the tech and regulator leaders to create some protocols with the right equations to balance this new hype.
This surge comes as AI begins to reshape industries, with generative AI playing an increasingly central role in layoffs and workforce restructuring.
According to data from Challenger, Gray & Christmas, a leading human resources consulting firm, over 10,000 U.S. jobs were directly eliminated in the first seven months of 2025 due to AI adoption.
The agency now ranks AI among the top five causes of job cuts highlighting its growing influence in corporate decision making.
The numbers tell a troubling story: by mid 2025, U.S. companies had announced more than 806,000 layoffs, the highest since 2020. The tech sector has borne the brunt, with over 89,000 jobs axed and at least 27,000 tech positions replaced by AI automation since 2023.
Junior Roles Are Being Hit the Hardest
AI is especially targeting entry level positions, where tasks are often repetitive or data heavy such as data collection, basic chart creation, and onboarding processes. These roles, typically filled by junior employees, are increasingly being automated.
A study by Handshake, a job platform focused on Gen Z, shows that recruitment for junior roles dropped by 15% year over year. Meanwhile, the number of job postings mentioning AI has surged by 400% over the past two years.
Yale School of Management’s associate professor, Dr. Botelho, notes that junior employees are at the epicenter of this disruption. “These are roles that involve knowledge intensive, routine tasks what AI can easily replicate,” he said. “As a result, many managers opt to reduce entry level hires.”
However, Botelho warns that while cutting junior positions might boost short term profits, it could harm long term organizational growth. “If companies keep reducing new hires, they risk missing out on future leaders and core talent,” he cautioned.
The Employment Crisis Among Young Workers
The economic slowdown, compounded by AI’s rapid integration, has made it even harder for young people to secure work. A recent survey reveals that nearly half of U.S. Gen Z job seekers believe AI has diminished the value of their academic qualifications.
The unemployment rate for recent college graduates rose to 6% well above the national average of around 4%. In the tech industry, the impact is even more severe. According to Goldman Sachs economist Joseph Briggs, the unemployment rate among 20 to 30 year olds in tech has increased by approximately 3 percentage points since the start of the year, exceeding the average rise across the broader economy.
Is mention USA in here as It can be found data easily on economics. I am curious though how Europe, Asia and the rest of the world is affected by it. Should it be affected by the pace they are adapting AI in their life or will they be affected anyway in the same way?
Briggs emphasized that while full scale AI deployment is still in progress, signs of a hiring freeze are visible in the tech sector, especially among younger workers. Over the past three years, the tech industry's share of overall employment has begun to decline, with recruitment falling below historical trends.
The Cost of “AI Efficiency” Strategies
Some major companies are already adapting their hiring strategies to align with AI’s growing capabilities. Shopify’s CEO recently stated, “If AI can do it, we no longer need to recruit new people.” Similarly, consulting giant McKinsey has deployed thousands of AI agents to replace tasks previously handled by junior staff.
Duolingo’s “AI First” approach has also influenced hiring and promotions, with employee proficiency in AI playing a key role in career advancement. Meanwhile, Google’s parent company, Alphabet, and Microsoft report that AI contributes to roughly 30% of code in certain projects. Salesforce CEO Mark Benioff declared that AI already accounts for 50% of the company’s workforce in some areas.
Beyond AI: Macroeconomic Challenges
While AI is a major driver of job disruption, it’s not the only factor. U.S. employment data has been under pressure due to broader macroeconomic forces. In July 2025, non farm payroll employment fell short of expectations, and previous figures were revised downward. Economists attribute this stagnation to President Trump’s ongoing tariff policies, which have introduced uncertainty into the business environment and discouraged investment and hiring.
Data from the New York Fed also shows that the unemployment rate for college educated young adults aged 22 to 27 reached 5.8% in March its highest level in four years. Oxford Economics estimates that 85% of recent job losses are due to new entrants unable to find work, rather than large scale layoffs.
The Future of Work: What’s Next?
While current AI systems are primarily task specific, experts warn that the real disruption could come with the rise of Artificial General Intelligence (AGI) hypothetical future where AI systems can learn and adapt across domains like humans.
“If AGI becomes a reality, we’re looking at a much deeper transformation,” says Briggs. “The scope for labor substitution would be vastly expanded, and the societal impact could be immense.”
Preparing for the New Normal
The AI driven job market shift is accelerating, and the burden is falling heavily on young professionals. As companies embrace automation to cut costs and boost efficiency, they must also consider the long term consequences of reducing investment in human capital.
For job seekers, especially those just entering the workforce, the message is clear: adaptability, continuous learning, and AI literacy are becoming essential survival skills. For policymakers, the challenge lies in balancing innovation with social stability to ensure that the AI revolution benefits everyone not just the tech elite.
In this age of rapid technological transformation, the question is no longer whether AI will disrupt the workforce but how quickly we can prepare for it.
