When it comes to job cuts, older workers often feel the impact the hardest. But a recent survey of CEOs shows that this might change as companies embrace artificial intelligence (AI).
According to a global survey by Oliver Wyman, over 40% of CEOs plan to cut junior roles in the next couple of years, focusing more on mid-level and senior positions. Just a year prior, this trend was nearly reversed.
John Romeo from Oliver Wyman highlights a crucial shift: “The junior level is definitely finding it harder now to enter the workforce. CEOs are now looking to mid- and senior-level employees for productivity.” The rise of AI plays a big role here. While AI can handle basic tasks like coding and evaluating leads, it struggles with complex decision-making that relies on experience.
Ravin Jesuthasan, a consultant and author, emphasizes the value of experience in the workplace. Companies today want employees with hands-on experience, as their wisdom and problem-solving skills make them invaluable.
A study from Harvard backs this up. It found that companies using generative AI have cut junior roles, while senior positions have remained stable. However, overlooking younger talent for AI may lead to a future shortage of skilled workers, warns Helen Leis, a leader at Oliver Wyman. She stresses that mid-level employees need time to learn the job and the company to manage AI effectively.
Interestingly, IBM announced its plan to triple entry-level hiring in the U.S. this year, aiming to adapt job descriptions for the AI era. This sets them apart from trends shown by a Stanford study, which found young workers in AI-affected fields faced a 16% higher risk of job loss.
Despite potential benefits for older employees in the current job landscape, job security isn’t guaranteed. Teresa Ghilarducci, a labor economist, points out that companies’ commitment to their workers is declining.
This shifting landscape raises important questions about the future of work and the balance between experience and innovation. As we navigate these changes, understanding the dynamics at play will be crucial for all job seekers.
For more on these trends, you can explore Oliver Wyman’s insights here and details from the Harvard study here.
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