As AI puts the squeeze on entry-level jobs, teens remain optimistic

Even as the U.S. economy adds jobs and the unemployment rate ticks lower, there are fewer hiring opportunities for college graduates. And yet, high school students remain remarkably optimistic about their future employment prospects.

According to a new report by Junior Achievement, 73% of teenagers said the artificial Intelligence boom will have a mostly positive effect — or no impact at all — on their ability to get a good job that pays well. Junior Achievement surveyed more than 1,000 teens between the ages of 13 and 18 in January.

Of those polled, 68% said they plan to attend college, in line with recent years.

“It’s awesome to see that today’s teens are optimistic about the future,” said Jack Harris, Junior Achievement’s CEO. “In the face of AI, some form of post-secondary education is going to be very necessary,” he said. “We just have to be sure we are preparing students in the right way so that optimism doesn’t fall flat.”

Recent data does show that the labor market is doing well. The U.S. economy added more jobs than expected in January, according to the Bureau of Labor Statistics. The overall unemployment rate edged down to 4.3% — but for younger workers, ages 16 to 24, it’s a different story. Among this cohort, the unemployment rate was 9.4% in January.

There is a bit of a disconnect between “teens that are a few years out and those just entering the workforce and having difficulty finding jobs,” Harris said.

Several large employers have said they’re eliminating some entry-level positions, thanks in part to the rise of AI. Employers are projecting just a 1.6% increase in hiring for the Class of 2026 when compared to the Class of 2025, research by the National Association of Colleges and Employers also shows.

Of course, some industries are more prone to disruptions than others. Entry-level jobs in technology and finance, for example, are at greater risk largely due to generative artificial intelligence, which can supplant a human’s analytical skills, according to a report by Indeed. Alternatively, opportunities in nursing, manufacturing or construction are more insulated, for now, the report found.

Fears of an AI-driven, white-collar recession are already prompting a growing share of college-aged students to pivot. This year, more chose to get a two-year degree or even shorter-term credential to put greater emphasis on career training and post-college employment. 

The rising price tag of a four-year education is another significant factor driving more students toward short-term programs, other research shows.  

“It really depends on the student,” said Jill Desjean, director of policy analysis at the National Association of Student Financial Aid Administrators. “For some students, they know that this is the path they want to take, that a two- year or four-year degree is just not in the cards for them, for reasons other than cost.”

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