The CEO of Goodwill, Steve Preston, has issued a stark warning that artificial intelligence is already contributing to a rise in youth unemployment. The organization, which provided employment services to over two million people last year, is now preparing for a significant increase in young job seekers, particularly from Gen Z, who are being displaced by automation in entry-level positions.
Key Takeaways
- Goodwill's CEO states that AI is already causing layoffs, particularly in entry-level roles like call centers and sales.
- The organization is preparing for an influx of unemployed young people, especially Gen Z, as automation targets low-wage jobs.
- Preston emphasizes that individuals without college degrees are currently facing the most significant employment challenges.
- He advises job seekers to develop practical digital skills, AI proficiency, and clean technology expertise to remain competitive.
- The warning extends to all age groups, suggesting that workers who fail to adapt to new technologies risk being excluded from the job market.
AI's Current Impact on the Labor Market
While many technology leaders downplay the immediate threat of AI to employment, Steve Preston, who heads the nationwide nonprofit, reports seeing the effects firsthand. He stated that Goodwill is witnessing "large organizations beginning to make significant layoffs based on a move to AI."
These job reductions are not a distant future possibility but a current reality. According to Preston, the impact is most visible in roles that are easier to automate, such as customer service and sales positions. "Call centers and sales roles are being particularly hard hit right now," he noted.
The Focus on Entry-Level Positions
Automation technologies are often first applied to tasks that are repetitive and follow clear rules. Many entry-level jobs in sectors like customer support, data entry, and administrative assistance fit this description, making them prime targets for AI-driven efficiency improvements and, consequently, workforce reductions.
Preston believes this trend will lead to a substantial decrease in the availability of certain jobs. "I don’t know that it’ll be catastrophic, but I do think we’re going to see a significant reduction in a number of jobs," he explained. He stressed that this shift will disproportionately affect workers in lower-paying roles.
Gen Z Faces Growing Employment Hurdles
The displacement of entry-level jobs poses a significant challenge for young people starting their careers. These positions have traditionally served as a critical stepping stone into the workforce, especially for recent high school and college graduates.
"It’s much harder to find a job," Preston said, highlighting the difficulties young adults are facing. "It’s really hitting college students right now in the marketplace. It’s really hitting young adults without college degrees."
The Degree Divide
Contrary to recent discussions about skills-based hiring diminishing the value of a college degree, Preston's observations suggest otherwise. He reports that individuals without higher education are currently the most vulnerable in the job market. "What I’m seeing is of the overall unemployment, people without college degrees have no jobs," he stated.
The Long-Term Consequences
The decline of entry-level roles has consequences beyond immediate unemployment. Preston warned that it eliminates crucial opportunities for young workers to develop fundamental skills, receive mentorship, and build a foundation for career growth within an organization.
This lack of opportunity can create a pipeline problem for companies in the future. If fewer people are trained in foundational roles, there may be a shortage of qualified candidates for mid-level and senior positions down the line. For young people, it can create a cycle of instability and hinder long-term career progression.
Developing Skills for the New Economy
To navigate this changing landscape, Preston advises young people to focus on acquiring skills that are in high demand. He emphasized that Goodwill actively consults with employers to identify the specific competencies needed for the jobs of today and tomorrow.
Three key areas were highlighted as essential for future job seekers:
- Practical Digital Skills: Preston noted a common misconception about digital literacy. While many young people are adept with social media, they often lack proficiency in workplace software. "We consistently find that if people get a certain level of attainment with digital skills, the door is open wide," he said, citing tools like Microsoft Excel and Google Docs.
- AI Proficiency: Beyond basic digital tools, learning to effectively use generative AI platforms is becoming a significant advantage. "Increasingly, no surprise, people who are proficient in using AI tools are beginning to leapfrog other people going into the marketplace," he observed.
- Clean Technology Skills: For those not pursuing a corporate path, the green economy offers promising opportunities. Preston suggested that skills in solar panel installation and EV charging station maintenance are areas of high growth that often do not require a college degree.
A Warning for All Generations
The need to adapt is not limited to Gen Z. Preston issued a clear warning to workers in their 30s and 40s who have not kept their skills current with technological advancements.
"If you are someone seeking a job in your 30s—or even 40s—and you haven’t acquired those skills, you’re pretty much locked out of a massive percentage of the jobs that are available in the marketplace."
However, he stressed that it is never too late to learn. He shared powerful examples of individuals who transformed their circumstances through training. "I can think of two women off the top of my head, who went from being homeless to jobs in Accenture and Google, after going through extensive digital boot camps," he said.
This underscores his core message: while AI presents a significant challenge to the traditional job market, proactive skill development offers a clear path toward new opportunities and economic stability.