How Young Workers Are Losing Out on Experience and Opportunities

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Published August 15, 2025 10:00 AM PDT

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AI Is Stealing Your First Job: Are Young Workers Doomed?

The rise of artificial intelligence (AI) is not just changing industries—it’s threatening the future of young workers. Entry-level roles, traditionally a gateway for gaining skills and workplace experience, are disappearing. Young professionals are now expected to possess experience before starting their first job, yet opportunities to learn on the job are vanishing {1}. This shift is creating a workforce crisis, with long-term consequences for youth employment and economic mobility.

Entry-Level Jobs Disappearing

Entry-level positions have historically been a critical pathway for skill development. Yet, AI is rapidly automating roles in sales, marketing, office administration, programming, and business analysis—jobs that were once accessible to newcomers {1}.

According to research, 34% of STEM professionals express concerns about losing their jobs to AI and automation, signaling that even highly skilled youth are vulnerable {3}. With AI taking over routine tasks, opportunities to gain real-world experience are shrinking.

The Paradox: Experience Needed, but Opportunities Gone

Employers increasingly require candidates to have prior work experience, yet the opportunities to acquire that experience are disappearing. Young workers face a catch-22: they cannot get hired without experience, and they cannot gain experience because AI is doing the jobs once reserved for beginners {1}.

This paradox is fueling youth unemployment and underemployment, leaving an entire generation without the skills and confidence previous generations gained on the job.

Economic Consequences of AI on Youth

The decline in entry-level positions has a broader economic impact. Young workers, especially from disadvantaged backgrounds, rely on these roles for financial independence. As AI takes over jobs, economic inequality worsens, and upward mobility becomes harder to achieve {1}.

Additionally, the trend contributes to a "jobless recovery," particularly affecting white-collar knowledge workers, including recent graduates {3}. Unemployment spikes among young people can slow economic growth and reduce consumer spending, creating long-term consequences for the economy.

On-the-Job Training Is Vanishing

AI is also reducing the emphasis on on-the-job training. Companies are investing less in human capital as automation handles routine tasks. A survey found that 49% of STEM professionals believe their companies are falling behind in AI adoption, creating a productivity gap and diminishing learning opportunities for youth {2}.

Without hands-on experience, young workers cannot develop essential workplace skills, leaving them unprepared for the future labor market.

Psychological Effects on Young Workers

The fear of AI replacing jobs takes a psychological toll on young workers. The pressure to arrive fully experienced in a labor market dominated by automation leads to anxiety and decreased self-esteem. About 28% of STEM professionals report heightened worries about their well-being due to AI and automation {2}.

Conclusion

AI is reshaping the workforce, but its impact on youth employment is particularly alarming. By replacing entry-level roles, automation denies young people critical experience, training, and economic opportunities. Policymakers and businesses must act urgently to create pathways for skill development and youth employment. Failure to do so risks a generation marginalized by AI, rather than empowered by technology.

Sources

  1. The Australian. AI literacy or a trade: The best path for school leavers.

  2. SThree. 2023 STEM professionals study: AI and automation.

  3. Business Insider. AI and the jobless recovery for white-collar workers.

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    By CEO TodayAugust 15, 2025

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