AI Revolution to Hit Young Workers Hardest as Entry-Level Jobs Face Elimination

The world’s labor markets are bracing for a massive transformation as artificial intelligence continues its rapid advancement. The International Monetary Fund’s managing director delivered a stark warning at a major international gathering, comparing the upcoming changes to a natural disaster in terms of their scale and impact. Research indicates that developed nations will see the majority of their workforce affected by AI technologies in the coming years.
According to the latest projections, approximately 60% of positions in advanced economies will experience some form of AI-related change, whether through enhancement, transformation, or elimination. The global average sits at 40%, suggesting that even developing nations won’t be immune to these shifts. Early data shows that roughly one in ten jobs in developed countries has already been augmented by AI capabilities, often resulting in higher compensation for those workers and positive ripple effects throughout their communities.
However, the benefits aren’t being distributed evenly across age groups or skill levels. Young people entering the workforce face particularly challenging prospects, as many traditional entry-level positions are among those most vulnerable to automation. These starter roles, which have historically served as crucial stepping stones for career development, are increasingly being performed by AI systems instead of human workers.
The middle class also faces potential squeeze, according to economic experts. Workers whose jobs remain unchanged by AI may find themselves at a disadvantage, potentially experiencing wage stagnation or decline without the productivity gains that AI-enhanced roles provide. This creates a bifurcated labor market where some workers benefit significantly while others fall behind.
Regulation remains a critical concern, with leaders expressing fears that the technology is advancing faster than society’s ability to create appropriate safeguards. Questions about safety, inclusivity, and equitable distribution of benefits remain largely unanswered. Labor representatives are calling for collaborative approaches that involve workers in decisions about AI implementation, ensuring that productivity gains are shared broadly rather than concentrated among a few powerful corporations. The energy and capital-intensive nature of AI development also raises questions about international cooperation versus growing economic nationalism.