AI Triggers Job Drought for Young Workers, Warns Recruiter

Artificial intelligence (AI) is significantly impacting the job market for young people, leading to a “jobs drought” for graduates and those seeking entry-level positions, according to James Reed, chair of Reed Recruitment. Speaking at the Other Voices festival in Dingle, Co Kerry, Reed highlighted concerns that the situation is unlikely to improve in the near future.

Reed, who has over 30 years of experience in the recruitment industry, stated that he has never witnessed a decline in job vacancies during a growing economy. He noted, “The truth is we haven’t even hit rock bottom yet in terms of decreasing numbers of vacancies – and this holds for all our markets, including Ireland.” Reed Recruitment employs more than 4,500 people across 200 locations globally, advertising between 1 million and 3 million jobs each year.

The impact of AI is already visible, with a notable decrease in white-collar roles across various sectors, including customer service, accountancy, and call centres. Reed shared data revealing that the number of graduate jobs advertised through their platform has fallen by two-thirds over the last three years, dropping from 180,000 to 55,000. He projected an additional 9 percent decline in graduate job listings for the final quarter of 2025. Other job sites report similar trends, indicating a broader issue within the job market.

Many employers are not reducing their workforce, but they are implementing hiring freezes. This strategy disproportionately affects graduate roles and youth employment overall. In the UK, youth unemployment has reached 15.3 percent, the highest level in a decade, not accounting for the period impacted by the COVID-19 pandemic. Reed acknowledged that this reduction in job opportunities is detrimental to his own business.

While factors such as increased minimum wage and employer taxes contribute to the situation, Reed believes that AI has emerged as the primary driver behind the decreasing number of vacancies. This decline is occurring independently of overall economic performance, marking a departure from previous cyclical downturns. “An entire generation of young people are bearing the brunt of this because new jobs are not being created,” Reed stated. “Employers are simply not hiring.”

The ramifications of this trend could be dire, according to Reed. He warned of potential social and political consequences, stating, “It is extremely disruptive in the traditional sense of that word and potentially catastrophic, with huge social and political consequences, including the rise of extremism and threatening the functioning of society.” He drew parallels between the current situation for white-collar workers and the earlier technological shifts that affected blue-collar roles, such as those in manufacturing.

Reed emphasized that this transformation in the relationship between people and work is a critical issue of our time. He expressed skepticism about the notion that AI would create new job opportunities, saying, “Many, many people are already having a hard enough time as it is, and despite the promises from its advocates, I can’t see how AI is going to create jobs.”

As the landscape of employment continues to evolve, the insights from James Reed highlight urgent challenges that young workers must navigate in an increasingly automated job market. The ongoing decline in entry-level positions raises fundamental questions about the future of work and the opportunities available to new entrants in the workforce.