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Microsoft co-founder Bill Gates is urging recent graduates to embrace AI tools as a way to enhance their prospects, whilst acknowledging that the pace of disruption sweeping the early-career job market is unlikely to slow down.
“Embracing [AI], and tracking it, will be very, very important,” Gates said in comments to CNN. “That doesn’t guarantee we’re not going to have a lot of dislocation.”
Gates continues to advise young people to “be curious, read, and use the latest tools.” He believes smart systems can open up opportunities that are “fun and empowering.” Still, the challenge for Gen Z is not a lack of interest in AI, but the speed at which entry-level jobs are being replaced or transformed.
Entry-level roles under pressure
Across the US, entry-level job postings have fallen roughly 35% since January 2023. AI has played a central role in the drop, with roles susceptible to automation seeing the steepest declines.
Gen Z job seekers are feeling the impact directly. Many have voiced frustration on TikTok, sharing rejection experiences and suggesting the traditional job hunt feels broken. According to one recent survey, 49% of Gen Z job hunters in the US believe AI has reduced the value of their degrees.
Unemployment among recent college graduates has also risen beyond 6% over the past 12 months, compared to a national average of around 4%.
Companies are shifting how they approach junior roles. At Carlyle, where new hires once manually sourced documents and information, AI now performs that work. The firm is now looking for entry-level staff who can ensure accuracy in machine-generated output.
Some employers are scaling back early-career hiring altogether. Bill Balderaz, CEO of Futurety, told the Wall Street Journal he skipped hiring a summer intern this year and used ChatGPT to create social media content instead.
Graduates rethink career choices
In response to rising automation and declining job openings, Gen Z workers are adjusting. Many are gravitating toward careers that rely on human connection, creativity, and physical skills.
A recent survey of 1,000 Gen Z workers showed that 53% are pursuing skilled trades, including construction, plumbing, and electrical work. Such roles often do not require a degree and can offer six-figure incomes.
Others are seeking stability in healthcare, education, and social work - professions seen as less vulnerable to automation and offering a stronger sense of purpose.
Analysts suggest more nuance in AI's effect on the job market, with new roles emerging as others are lost.
“It’s this sort of double-edged sword restructuring that I think a lot of tech giants are encountering in this age of AI, where they have to find the right balance between maintaining an appropriate head count, but also allowing artificial intelligence to come to the forefront,” said Bryan Hayes, a strategist at Zacks Investment Research.
He added: "“Will AI replace some of these jobs? Absolutely. But it’s also going to create a lot of jobs. Employees that are able to leverage artificial intelligence and help the companies innovate, and create new products and services, are going to be the ones that are in high demand.”
