IMF warns AI could hit young workers as graduates battle for entry-level jobs

The head of the International Monetary Fund, Kristalina Georgieva, has warned that artificial intelligence and wider labour market changes amount to a 'slow-moving tsunami' for young workers. She said AI is not the only factor, but estimated that around 40% of jobs globally could be augmented, downgraded or eliminated over time.

Georgieva said young people entering the labour market are the first group to worry about. Entry-level routine and repetitive roles have traditionally allowed new workers to start, gain experience and move up. If those roles disappear, she said, young people will struggle to find a professional path. She added that no young person wants to be a barista in a coffee shop as a professional future.

The warning came as four graduates described their job searches. Emily, 22, has two degrees, including a Masters, but no job. She said graduation felt exciting and she was eager to start a career in journalism, but after a year of applying through LinkedIn and reaching out to contacts she lost confidence and hope.

Hannah, 23, a history graduate, has been looking for work for nearly a year. She expected a few months of rejections before finding a role. Instead, she has applied for close to 100 jobs since January last year. No more than half of employers replied, she said.

Jugraj, from Coventry, has a digital marketing degree and has applied for around 300 jobs. He said people with more experience are applying for entry-level roles, leaving new graduates at a disadvantage. Recruiters prefer candidates with experience, which makes it harder for those with little paid work experience to get a first chance.

Olochi has a biomedical sciences degree and trained to work as a biomedical scientist doing diagnostic tests. She is working in retail instead and is now a junior manager. She said she respects her colleagues and her retail job, but it was not the career she intended. She also said many young people are in the same position because entry-level jobs are not available.

Hannah said AI has created a disconnect between applicants and graduates. She said applicants can be competing with 200 or 300 other people, while recruiters may receive up to 1,000 CVs and have to sift through machine-generated applications. She said the application process is laborious, and she has sometimes used AI to help write individual cover letters. She added that her generation feels mis-sold: graduates were not entitled to jobs, but even those who took internships and tried to build networks feel there is nothing more they can do.