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AI’s Unseen Hand: Gen Z Grapples with Shrinking Entry-Level Job Market
As AI technologies evolve, Gen Z faces significant challenges in securing entry-level jobs. This analysis examines the impacts, trends, and future outlook for young professionals.
New Delhi, india — The entry-level job market has shrunk significantly as artificial intelligence (AI) technologies automate tasks previously performed by humans. According to a recent analysis by the world economic Forum, 85 million jobs may be displaced by 2025 due to AI and automation, while only 97 million new roles are expected to emerge, many requiring advanced digital skills 1. this shift poses a daunting challenge for Gen Z, who are entering a workforce that is increasingly reliant on technology.
As of late 2025, Gen Z—those born between 1997 and 2012—are facing an unprecedented landscape where traditional entry-level positions are disappearing. companies are automating processes to cut costs and improve efficiency, leading to fewer opportunities for young job seekers. The challenge is particularly acute in sectors such as customer service and data entry, where AI-driven solutions have become commonplace 2.
AI’s role in Job displacement
research by McKinsey & company indicates that up to 30% of the workforce could be displaced by automation by 2030, with entry-level roles being among the most vulnerable 3. For instance, chatbots and virtual assistants are taking over customer service functions, which traditionally provided a pathway for Gen Z to enter the workforce. The result is that fewer positions are available, and those that remain often require specialized skills.
skill gaps Create Barriers
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Read More →The skills gap is another critical issue. A report from the world economic Forum notes that 54% of all employees will require significant upskilling by 2025 4. For Gen Z, this means they must not only navigate a competitive job market but also equip themselves with the necessary skills to thrive. Fields like data analysis, machine learning, and digital marketing are increasingly in demand, yet many young candidates lack exposure to these areas during their education 5.
These initiatives aim to bridge the gap between education and the skills employers need, but their effectiveness varies widely depending on region and accessibility.
education and training initiatives
In response to these challenges, educational institutions are adapting curricula to better prepare students for a tech-driven job market. For example, institutions like the indian Institute of technology (IIT) and various online platforms are offering courses focused on AI and data science 6. These initiatives aim to bridge the gap between education and the skills employers need, but their effectiveness varies widely depending on region and accessibility.
internships and networking opportunities
internships are becoming increasingly important for Gen Z as they seek to gain real–world experience. companies are now prioritizing candidates who have practical experience with technology, making it essential for young professionals to secure internships that offer exposure to AI and related technologies 7. Additionally, networking platforms like linkedin have become vital for job searching, providing Gen Z with tools to connect with industry leaders and potential employers.
global Context and Comparisons
On a global scale, the impact of AI on entry-level jobs varies. In developed countries, automation may lead to a more significant reduction in traditional roles due to higher labor costs 8. Conversely, developing nations may experience a slower transition, allowing for a more gradual evolution of job opportunities. However, the overarching trend remains the same: a shift towards technology-driven roles, necessitating a reevaluation of how young professionals approach their career paths.
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Read More →Counterpoint: The potential for New opportunities
despite the challenges posed by AI, some experts argue that new job categories will emerge as technology continues to evolve. According to a report by the international labour Organization, sectors such as renewable energy, healthcare, and technology are expected to see job growth, potentially offsetting some losses in traditional roles 9. Moreover, the demand for AI specialists, data analysts, and software developers is likely to surge, creating opportunities for those who pursue relevant education and training.
Sources consulted: world economic Forum, McKinsey & Company, international labour Organization, economic times, business Insider
However, the overarching trend remains the same: a shift towards technology-driven roles, necessitating a reevaluation of how young professionals approach their career paths.
Looking ahead
As the job market continues to evolve, Gen Z must adapt by embracing lifelong learning and skill development. How will educational institutions respond to these shifts in demand? By 2026, the need for digital skills is expected to become even more pronounced, making it crucial for young professionals to take proactive steps in their career preparation. What strategies will you employ to enhance your employability in this changing landscape?
