New research shows AI hitting entry-level workers hardest globally

A convergence of new research from central banks, investment firms and academic institutions published this week paints a stark picture: the economic disruption from artificial intelligence is landing first and hardest on young and entry-level workers, eroding traditional pathways into the workforce across developed economies.

South Korea's Youth Bear the Brunt

A Bank of Korea report released on August 18 found that of 285,000 youth jobs lost among workers aged 15 to 29 between June 2022 and June 2026, 268,000 — or 94% — were concentrated in sectors with high AI exposure. Information services saw the steepest decline at 31.4%, followed by publishing at 27.4%, computer programming at 16.6% and professional services at 11.6%.sedaily+2

The report revealed a widening generational gap: while youth employment contracted, jobs held by workers in their 50s rose by 230,000 in the same high-exposure sectors. College-educated young workers were hit particularly hard, with their average unemployment rate reaching 7% since ChatGPT's November 2022 launch — 1.6 percentage points above the rate for those with less education.biz.chosun+1

The Bank of Korea drew a critical distinction: the damage was severe in sectors deploying AI for automation, but limited where AI was used for augmentation — assisting rather than replacing human work.xinhuanet+1

Goldman Sachs Finds Global Pattern

Separately, Goldman Sachs published research on Tuesday showing that AI-related employment pressures are already visible across developed markets, with entry-level workers bearing the worst of it. US call center employment now sits 39% below its historical trend, with Canada down 33% and Germany 27% below trend. Across more than 800 occupations analyzed, AI headwinds were strongest among entry-level workers, where a 10% occupational exposure to AI was associated with a drag on annual headcount growth more than three times larger than for the broader workforce.cnbc

Britain's Growing Crisis

In the United Kingdom, youth unemployment has reached 16.4% — the highest in a decade and rising faster than in any other G-7 country. Banks and consulting firms are shrinking graduate classes, while hedge funds that once hired three junior analysts to review filings now need only one person to oversee an AI model. A King's College London study confirmed that job cuts at firms with AI-exposed staff were mostly concentrated in junior roles.economictimes.indiatimes

Career coach Georgie Blackburn told Bloomberg that most of her clients today are young people fresh out of university, up from one in ten two years ago. "A degree is not enough on its own, never has been, but even more so today," she said.economictimes.indiatimes

Prime Minister Andy Burnham has responded with subsidized employment schemes and a £3,000-per-job grant for employers who hire unemployed young people, while promising to overhaul vocational training so that "Britain will value the hard hat every bit as much as the graduation cap".economictimes.indiatimes