Gen Z Faces ‘Job-pocalypse’ as Firms Prioritise AI Over New Hires

TL;DR:

  • 41% of global business leaders are using AI to reduce employee headcount
  • One quarter of bosses believe all or most entry-level tasks could be automated
  • 31% of organisations now consider AI solutions before hiring people
  • The word “automation” appears seven times more frequently than “upskilling” in company reports

Young people entering the workforce are confronting what researchers are calling a “job-pocalypse”, as business leaders across seven countries increasingly invest in artificial intelligence rather than hiring and training junior staff. The British Standards Institution study surveyed over 850 business leaders and found that automation is fundamentally reshaping entry-level employment opportunities for Gen Z workers born between 1997 and 2012.

Context and Background

The BSI research, conducted across the UK, US, France, Germany, Australia, China, and Japan, reveals that 41% of business leaders are already using AI to cut employee numbers. Nearly one-third (31%) of organisations now evaluate AI solutions before considering human hires, with two-fifths expecting this approach to become standard practice within five years.

Entry-level positions face the greatest threat, with 39% of leaders reporting that junior roles have already been reduced or eliminated through AI-driven efficiencies in research, administrative tasks, and briefing preparation. Analysis of company annual reports shows “automation” appearing almost seven times more frequently than terms like “upskilling” or “retraining”, suggesting businesses are prioritising technology investment over workforce development.

The impact coincides with a cooling UK labour market, where the unemployment rate has reached a four-year high of 4.7% and wage growth has slowed. However, most economists maintain this trend is not yet directly linked to accelerated AI investment, though concerns are mounting about the long-term implications.

Looking Forward

Susan Taylor Martin, BSI’s chief executive, emphasised the tension between productivity gains and workforce sustainability: “AI represents an enormous opportunity for businesses globally, but as they chase greater productivity and efficiency, we must not lose sight of the fact that it is ultimately people who power progress.” She called for urgent long-term thinking and workforce investment alongside AI implementation.

Three-quarters (76%) of surveyed leaders expect new AI tools to deliver tangible benefits within 12 months, primarily targeting productivity improvements, cost reduction, and skills gap filling. Whilst 53% believe AI’s benefits will outweigh workforce disruption, the research highlights the need for businesses to balance automation with employee development. Separate polling by the Trades Union Congress found half of UK adults are concerned about AI’s impact on their employment, underscoring the growing anxiety around automation’s workforce implications.

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