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Gen Z bearing the brunt of 16,000 monthly job losses due to AI

White collar administration is a space largely owned by Gen Z, which explains why they’re the generation most likely to find themselves out of work and replaced by AI.

Unless it’s putting creatives out of work, Gen Z is fairly content about the mainstream explosion of AI in recent years.

In-fact, the generation is far and away the most natively fluent in using AI tools. Anything that offers convenience to alleviate the stress of working life or free up some time is considered a win.

From experience, being able to offload tedious admin to AI agents or LLMs has become essential. The irony, however, is that the same reliance making our work easier is also leaving many roles redundant – especially the white collar ones that make up a chunky slice of the entry level market.

Goldman Sachs estimates that around 16,000 jobs are being lost each month in the US due to AI. In total, roughly 25,000 roles are being displaced, while only about 9,000 new ones are created, meaning job losses are significantly outpacing creation.

The entry-level (under 30s) vs experienced workers (31s-50s) gap is widening, and Gen Z in particular is at odds with AI, reason being they’re heavily involved in the types of admin roles that tech is best at automating. We’re talking data entry, customer service, legal support, billing. The list is endless, really.

Then there’s the whole experience dynamic, or lack thereof, that comes into play. Younger workers aren’t insulated from being laid off because they haven’t yet established the same level of perceived ‘indispensability’ that gives their seniors a buffer. There’s substance behind the jokes about needing 20 years of experience to get an internship.

Where once, junior tasks were given to entry level workers to learn the ropes at large companies, many of them are now leaning on automated systems to draft notes, organise data, handle customer queries, pull reports, all sorts of things. Listen carefully and you can almost hear arrogant corporate chuntering about ChatGPT never needing a mental health day.

Given young people’s stress about AI, and one look at Twitter or Reddit will prove it’s still causing existential dread, some may find it surprising that Gen Z won’t flat out reject the technology, but there’s zero sign of that happening.

The twisted situation is that Gen Z are the best versed in optimising AI platforms for workflows and innovation, but that very familiarity could be the very thing costing them a salary.

The thinking is: Why not collapse the role altogether, if AI can handle the bulk of it? It’s grim and sad, but undeniably efficient if short term productivity gain is the aim.

For Gen Z, maybe a change of tact then? If you’re still trying to impress your manager by demoing experimental new AI tools, you were definitely one of those pupils that reminded teachers about collecting homework at school.

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