As companies navigate the uncertain terrain of artificial intelligence (AI) and its implications for white-collar employment, entry-level positions are bearing the brunt of these changes. A recent report from the Irish Department of Finance underscores the global impact of AI on young workers, revealing significant vulnerabilities within the labor market.
According to the report, approximately 63% of jobs in Ireland are “relatively exposed” to AI, with sectors like technology and financial services already feeling the repercussions of AI adoption. Young workers aged 15 to 29 in the tech sector are experiencing one of the highest rates of job stagnation, with employment projected to fall by 20% between 2023 and 2025. In stark contrast, employment for “prime-age” workers, between ages 30 and 59, is expected to grow by 12% during the same period.
The decline in employment for younger workers is particularly pronounced in financial, tech, information, and communications sectors, where jobs categorized as “at risk” saw a 1% decrease between 2023 and 2025, despite overall growth in these industries. High-AI risk sectors such as financial services and tech are forecasted to experience only 4% employment growth, significantly weaker than other sectors. For instance, low-risk industries like construction and healthcare are anticipated to see a 6.25% growth rate.
This situation reflects not merely a challenging job market for Generation Z but highlights a crisis unique to high-risk industries. Interestingly, the study indicates that young workers in lower-risk sectors are outperforming their older counterparts in terms of employment growth.
Ireland serves as a crucial case study for the effects of AI on traditionally stable sectors like tech and finance. The country, home to 5.3 million people, hosts a high concentration of international conglomerates that dominate these industries. In November 2025, over 11% of job postings in Ireland on Indeed included AI-related terms, a figure three times higher than recorded in both the U.S. and Europe.
The report notes that adjustments in the labor market due to AI have primarily occurred through shifts in hiring practices rather than through the outright displacement of existing employees. Youth unemployment in Ireland stands at nearly 12%, a figure that has been rising since the third quarter of 2024. Despite having the highest share of STEM graduates per capita in the E.U. and being frequently ranked as a top country for AI talent, young graduates in STEM fields are facing unprecedented disruptions in their career paths.
Similar trends are emerging in the United States, where young Americans are also grappling with the impact of AI on employment. Research from the Stanford Institute for Economic Policy Research indicates that early-career Americans aged 22 to 25 working in the most “AI-exposed occupations” have experienced a 16% relative decline in employment. AI industry leaders have sounded alarms about the future of white-collar jobs, with Microsoft AI chief Mustafa Suleyman warning that all white-collar roles involving “sitting down at a computer” will be automated within the next 18 months.
More cautious voices, such as Anthropic CEO Dario Amodei, predict that AI could eliminate half of all entry-level white-collar jobs within five years, leading to employment rates as low as 10% to 20%. The report indicates that this job stagnation is not confined to Ireland; it reflects a broader global trend where entry-level roles are increasingly threatened by AI technologies, particularly in digitized sectors of tech and finance.
In response to these challenges, the authors of the report recommend that the Irish government implement policies to support upskilling and reskilling for affected workers. In the U.S., the Trump Administration has proposed an AI Action Plan aimed at retraining workers, though specific details regarding targeted industries and demographics remain undisclosed. As nations grapple with the ramifications of AI on employment, the urgency for targeted policy responses becomes increasingly clear.
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