- Younger workers hardest hit by job layoffs, research finds
- Tech sector significantly affected, with AI bringing large adjustments
- Companies look to rent older workers, “turning expertise pyramids into diamonds”
Younger workers and people trying to enter the workforce may quickly battle much more to discover a job as bosses more and more flip to AI instruments for entry-level duties, new analysis has warned.
The worldwide CEO research by consulting agency Oliver Wyman discovered employers are set to give attention to hiring for extra senior roles, whilst most plan to hold employees ranges as they’re, and even lay off workers.
As an alternative, AI assistants, brokers and chatbots will be used to full these primary or menial jobs which till now have been the training fodder for brand new workers.
Job struggles
Total, it was unhealthy information for the know-how sector, which the report discovered was the toughest hit by world job cuts, as practically three-quarters (74%) of CEOs mentioned they’re both freezing or decreasing headcount, up from 67% the earlier 12 months.
Larger firms have been extra doubtless to make cuts, the research discovered, with 39% of “mega-size” firms planning reductions versus 28% of smaller ones.
And younger workers are taking the brunt of the punishment, because the variety of CEOs saying junior roles are set to be diminished over the subsequent 12 months or two has doubled (to 43% from 17%) since 2025 – and shockingly, solely 17% of CEOs mentioned they might be shifting focus to rent extra junior positions.
As an alternative, CEOs are trying to rent older workers, the report discovered, with round 30% saying they’re shifting hiring to extra mid-level roles – up from solely 10% the earlier 12 months – turning the “expertise pyramids into diamonds”, the report says.
So is AI to blame? The research discovered, maybe unsurprisingly, that the know-how was a significant precedence for many CEOs, as greater than 90% mentioned they’re deploying AI of their firms – with over two-thirds (67%) nonetheless on the planning or pilot phases.
“Notably, the CEOs with the longest planning horizons are the most probably to plan headcount reductions,” the report says. “That means they count on a structurally leaner group not as a value measure however because the vacation spot — the endpoint of an AI-augmented working mannequin that requires fewer folks, deployed in another way.”
“However this calculus carries danger,” it provides, “Headcount discount that outpaces significant AI deployment can depart organizations uncovered, and overreliance on methods which can be nonetheless maturing introduces its personal vulnerabilities. The tougher query — one with which many CEOs are nonetheless grappling — is what their expertise pipeline and firm tradition will seem like in three years if the funding in junior workers will not be made at the moment.”
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