Developed Countries... Employment Opportunities Begin to Decrease Due to AI

[Financial News] Employment opportunities in developed countries are showing signs of decreasing due to artificial intelligence (AI).
On the 13th (local time), foreign media such as CBS News reported that companies are reducing employment due to AI, making it increasingly difficult for college graduates to find jobs.
In particular, the development of generative AI is narrowing the employment door for newcomers to society. According to statistics from the employment platform Handshake, the recruitment scale for jobs that fresh college graduates can enter has decreased by 15%.
Doug Kalidas, vice president of the non-profit organization 'Responsible Innovation for Americans', stated that AI is taking away jobs, especially from less experienced workers. 
In statistics released by the New York Federal Reserve in March, the unemployment rate for college graduates aged 22-27 in the United States was 5.8%, higher than the overall U.S. unemployment rate.
Kalidas predicted that although job opportunities in the software field were expected to increase for STEM majors, they may fall short of expectations in the future.
CBS News reported that a young man who graduated this year with a degree in mechanical engineering from the University of Connecticut in the United States applied to over 200 companies but was unable to find a job and is working as an assistant pool manager at a country club in New York State.
This graduate lamented that he expected to find a job immediately after graduating from college, but there were no jobs available.
Handshake emphasized that as AI is increasingly used, it is essential for newcomers to use and learn AI.
George Mason University economics professor Liya Palagashvili explained that while job opportunities for low-skilled or low-educated individuals are decreasing due to generative AI, the demand for jobs for those with high AI knowledge or education has increased since OpenAI released Chat GPT in 2022.
Kalidas said, "In the future, young people are expected to flock to jobs that do not require expensive college education due to AI."
He said, "After automation began in the 1970s, many physical jobs disappeared, and white-collar jobs were considered safe, leading to an increase in college enrollment, but now technical jobs may be wiser."
British companies are also beginning to reduce employment for jobs that will become unnecessary due to AI.
McKinsey & Company's analysis noted that the recruitment scale in the UK from March to May decreased by 22% compared to the same period three years ago, with finance and IT decreasing by 38%.
According to McKinsey, despite good corporate performance, the recruitment scale for professionals and IT decreased during this period, with programmer, management consulting, and graphic designer jobs decreasing by more than 50%.
Recruitment search engine Adzuna's representative said, "The rapid rise of AI is pressuring young job seekers who have been suffering from the aftermath of the COVID-19 pandemic and inflation."


jjyoon@fnnews.com Yoon Jae-jun Reporter