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AI Devours Entry-Level Jobs: Youth Hit Hardest
20 Feb
Summary
- AI's labor market impact is concentrated among young workers.
- Young workers in tech and finance face high job stagnation rates.
- AI-related hiring changes, not worker displacement, drive adjustments.
Entry-level positions globally are experiencing significant AI-driven uncertainty, disproportionately affecting younger workers. A recent Irish Department of Finance report highlights that approximately 63% of jobs in Ireland are exposed to AI, with youth employment in sectors like tech and finance seeing notable stagnation between 2023 and 2025.
While employment for prime-age workers (30-59) grew, younger workers (15-29) in "at risk" sectors saw a 1% decline. High-risk industries such as financial services and tech experienced weaker overall employment growth of 4% compared to low-risk sectors like construction and healthcare at 6.25%.
The adjustments are primarily occurring through changes in hiring and job entry, rather than the displacement of existing employees. This phenomenon is mirrored in the U.S., where early-career Americans in AI-exposed occupations have faced a relative employment decline.
Industry leaders in the U.S. forecast significant automation of white-collar roles, with predictions of substantial elimination of entry-level positions within the next five years. Governments, including Ireland and the U.S., are considering policy responses such as upskilling and retraining initiatives.
