Gen Z Are Losing Jobs They Just Got: 'Easily Replaced'

Companies are planning to lay off the Gen Z workers they just hired, according to a survey by Intelligent.

The report found 78 percent of 800 U.S. hiring managers questioned said their company will lay off recent graduates due to artificial intelligence advances.

Only 22 percent of the hiring managers indicated recent graduates were safe from layoffs at their company due to AI. Granted, the layoffs might not necessarily be huge in nature.

But among the companies that said they plan to lay off recent graduates, 23 percent said less than 3 percent would be let go, and 27 percent said between 5 to 10 percent will lose their jobs.

However, 11 percent of the companies are planning to cut 15 to 30 percent of their recent graduate employees. And the same number said a whopping 30 to 60 percent will be laid off in total.

According to Intelligent's Chief Education and Career Development Advisor, Huy Nguyen, the layoffs will likely come down to how easily younger workers in entry level roles can be replaced with AI.

"Many recent graduates are hired to fill entry-level roles that involve information-related tasks such as research, data entry, customer service, and general office assistance," Nguyen, said in the report. "While these entry-level positions provide people entering the workforce for the first time with crucial experience, they are also the ones that are most easily replaced by artificial intelligence."

Nguyen said AI can't fully replace the critical thinking and problem-solving skills that humans have, but it can take over many routine and repetitive tasks newly hired graduates are assigned.

"This makes recent graduates among the most vulnerable for having their roles consolidated or even eliminated through wide-spread AI adoption," Nguyen said.

Many companies are also getting rid of their internship programs due to the rise of AI as well.

Among the surveyed group, 86 percent of companies said their companies offer internships, but 5 percent have stopped hiring for these placements entirely. Among those who stopped hiring interns, 29 percent said AI took over their interns' responsibilities.

Altogether, 70 percent of hiring managers agreed that AI can do the work of a recent graduate, and 57 percent said they even trust AI more than an intern.

But Andy Nisevic, the director of One Degree Training and Coaching, said employers should hesitate before they fall too quickly for the lure of AI in replacing entry level positions.

"The first thing I'd ask employers is to consider the fact that AI is a brilliant junior employee," Nisevic told Newsweek. "However, where do the next generation of senior employees come from if they're too reliant on AI? Senior employees have a combination of experience and knowledge. While knowledge can be taught, experience cannot."

On the other hand, however, recent graduates who had AI experience were seen in a much better light by hiring managers, as a whopping 95 percent said they were more likely to hire recent graduates with an AI background.

According to a report from online workforce training platform Pluralsight, 92 percent of companies have accelerated AI initiatives over the past year.

Still, HR consultant Bryan Driscoll said the shift to AI instead of recent graduate workers is "alarming" and indicates a "seismic shift" in the workforce.

"Sure, businesses are increasingly valuing the efficiency and cost-effectiveness of AI over the fresh perspectives and innovation potential that young talent brings, but they're overestimating its current abilities," Driscoll told Newsweek.

Companies have looked to AI primarily in a cost-effective way, Driscoll added, as the technology often promises to streamline operations and reduce costs.

"What's often overlooked in this calculation is the unique blend of creativity, adaptability, and digital nativism recent grads contribute," Driscoll said.

He added that an increased reliance on AI could have devastating impacts for the next generation moving into their early careers.

"If companies continue to sideline human talent in favor of automation, we risk creating a disenchanted generation, stripped of meaningful work opportunities, which could stifle innovation and exacerbate societal inequalities," Driscoll said.