Imagine stepping into the workforce only to find that many entry-level jobs are disappearing before you even get started. That’s the reality facing today’s generation Z, according to Steve Preston, CEO of Goodwill. He says the growing influence of artificial intelligence (AI) and automation is already causing a wave of young people to lose their footing in the job market. This is more than just speculation—it’s a change unfolding right now.

Goodwill, an organization with over 650 employment centers that supported more than two million job seekers last year, is preparing for a sharp rise in unemployment among young adults. Preston’s warning reflects findings from a recent Stanford University study showing a 13% drop in junior roles within sectors vulnerable to AI. Entry-level positions, once trusted stepping stones, are fading fast.

How AI is reshaping entry-level jobs

Many industry leaders tend to downplay AI’s ability to disrupt employment, but Preston paints a different picture. He says, “We are preparing for an influx of unemployed young people—and others—as AI rolls out.” The jobs most at risk? Low-wage and entry-level roles that don’t require extensive experience or education.

Preston draws from his experience as a former U.S. Secretary of Housing and Urban Development, noting that major companies have begun significant layoffs directly tied to AI integration. Call centers and sales positions, often filled by younger workers, are some of the hardest hit. While he doesn’t predict an immediate disaster, he expects a considerable decline in these jobs, which will affect low-income workers most severely.

It’s a sobering glimpse of a future where the very jobs young people depend on to start their careers are becoming scarce. This shift is reshaping what it means to find your first role in the workforce.

Generation Z caught in the education and employment gap

For decades, entry-level jobs have been the gateway for young adults to gain skills and climb the career ladder. However, Preston points out that it’s becoming tougher for many young people—college graduates included—to land these roles.

Contrary to popular opinion that values skills over degrees, Preston notes that those without a college degree are facing the biggest hurdles. “What I see is that people without a degree simply can’t find work,” he says, highlighting how young men especially are struggling to find a foothold.

This reality casts a heavy shadow. Young people without reliable job opportunities face pressure, uncertainty, and the fear of not building a future where they can thrive. The vanishing of entry-level positions not only cuts off income but also robs young workers of vital training and mentorship, setting back their career growth before it begins.

Adapting skills for tomorrow’s workforce

Despite these challenges, Preston encourages young workers to embrace change rather than fear it. Goodwill is working closely with employers to identify and develop the skills that will be essential for the future labor market.

One critical area is digital literacy. Preston stresses that simply knowing social media doesn’t cut it. Employers want workers skilled in practical tools like Microsoft Excel, Google Docs, and increasingly, AI platforms such as ChatGPT and Gemini.

“We see time and again that people who develop digital skills open more doors,” Preston explains. Many who assume they’re digitally savvy are actually falling behind, and those who master AI tools gain a significant edge in the job hunt. For those reluctant to pursue traditional corporate paths, Preston highlights the robust growth in green technology jobs—solar panel installation and EV charging station maintenance, for example. These fields often don’t require college degrees and offer promising career opportunities for generation Z workers seeking alternatives.

A wake-up call and a path forward for all ages

Preston’s message isn’t just for young workers; it’s a warning for anyone hoping to enter or stay in the workforce without updated skills. “If you’re looking for work at 30 or 40 and don’t have these digital abilities, many opportunities simply won’t be available,” he says bluntly.

Yet, the story is not all doom and gloom. Preston shares inspiring examples of people transforming their lives through retraining. Some have gone from homelessness to jobs at companies like Accenture and Google after gaining new skills. “It’s never too late,” he emphasizes.

Still, the erosion of opportunities partly results from how employers view young candidates. A survey by the Hult International Business School revealed that 37% of employers would rather hire AI than a gen Z graduate. Of 1,600 employers surveyed, nearly 90% avoid hiring fresh graduates, and 96% feel that college education often fails to prepare students for real-world jobs.

This paints a call to action for education systems, employers, and workers themselves to close the skills gap urgently.

Have you seen AI reshape job prospects for young people you know? What skills do you think will matter most in the coming years? Share your thoughts and stories in the comments below—let’s learn from each other as the world of work evolves.

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