The Looming Job Crisis: Echoes of the Past Haunt Gen Z
The struggles faced by young people entering the workforce are a stark reminder of economic hardships felt in the past. While culture wars may try to create divides, the shared experience of a difficult job market unites generations. Many millennials remember the challenges of entering the workforce during the 2008 financial crisis, and now, Gen Z faces a similar, if not more complex, landscape.
Back in 2008, many graduates entered the job market with optimism, armed with degrees and a strong work ethic. The expectation was that finding a job would be relatively straightforward. However, the global financial crash shattered these hopes, creating a highly competitive and discouraging environment for young job seekers.
Between 2008 and 2009, unemployment in the UK saw its most significant increase in three decades. The unemployment rate continued to climb in the following years, peaking in 2011. This period was characterised by countless applications, numerous rejections, and a feeling of helplessness as entry-level positions were flooded with applicants.
A Deja Vu for Gen Z?
Fast forward to the present day, and Gen Z is encountering its own unique set of challenges. While the unemployment figures might not be as high as during the 2008 recession, the situation is still bleak and eerily familiar.
Recent data from the Office for National Statistics (ONS) reveals that UK unemployment has reached a four-year high. Simultaneously, the number of job vacancies has plummeted, reaching a decade low, even when compared to periods of strict lockdown during the pandemic when businesses had hiring freezes. This scarcity of opportunities disproportionately affects young people who are just starting their careers and seeking full-time employment after completing their education. Reports indicate that graduates are facing the toughest job market since 2018.
The AI Factor: A New Level of Competition
Adding to the existing difficulties, the rise of artificial intelligence (AI) has significantly altered the job market for entry-level positions. Since the introduction of ChatGPT, the number of entry-level jobs has decreased by nearly a third. This decline is partly attributed to the fact that AI programs can easily automate junior roles like data entry and form filling.
Industry leaders are acknowledging the potential impact of AI on employment. The CEO of an AI firm suggested that AI could eliminate up to half of all entry-level jobs within five years, potentially causing unemployment to rise significantly. Some companies are even using provocative advertising campaigns that suggest replacing human workers with AI. Major companies have already announced job losses due to the integration of AI in their operations.
Economic Pressures and Their Impact
In addition to AI, employers are facing increased labour costs due to higher national insurance contributions and a rising minimum wage. Reducing staff numbers is often seen as the most direct and efficient way to manage these increased expenses. Data indicates a decline in the number of people on PAYE payroll since the announcement of the rise in national insurance contributions, suggesting a direct correlation between economic policies and employment levels.
The Human Cost: Stories of Struggle
Behind the statistics, real people are struggling to find work. Many young individuals are facing fierce competition, sending out hundreds of applications with little hope of even getting an interview. The emotional toll of this relentless job search can be devastating.
One graduate shared her experience of applying for over 600 jobs over 18 months before finally securing employment. These stories highlight the immense pressure and perseverance required to navigate the current job market.
Advice for a Generation in Crisis
In the face of these challenges, it’s essential to remember that the current situation is not a reflection of individual worth or capability. The economic climate and technological advancements are significant factors contributing to the difficulties in finding employment.
While it’s always beneficial to enhance skills, gain experience, and tailor applications to specific roles, it’s crucial to recognise that these efforts may not always guarantee success in a challenging job market. The feeling of frustration and despair when faced with constant rejection is understandable, but it’s vital to maintain self-confidence and resilience.
Despite the uncertainty, it’s important to persevere and believe that employment opportunities will eventually arise. The job market is constantly evolving, and while the challenges are significant, they are not insurmountable.
However, the possibility remains that AI could fundamentally alter the job landscape, potentially leading to widespread unemployment. In that scenario, collective efforts and systemic changes would be necessary to address the broader implications of technological advancements on the workforce.