Report Claims Gen Z Confronts ‘Employment Crisis’ as Global Firms Favor AI over Hiring

As young individuals enter the job market, they are encountering what some are calling an “employment apocalypse.” This is due to business leaders opting to invest in artificial intelligence (AI) over new hires, as revealed in a survey of global executives.

A report by the British Standards Institute (BSI) indicated that rather than nurturing junior employees, employers are focusing on AI automation to bridge skill gaps and enable layoffs.

In a study involving over 850 business leaders from seven countries—namely the UK, US, France, Germany, Australia, China, and Japan—41% of respondents reported that AI has facilitated a reduction in their workforce.

Nearly a third (31%) stated their organizations are considering AI solutions before hiring new talent, with two-fifths planning to do so in the next five years.

Highlighting the difficulties faced by Gen Z workers (born from 1997 to 2012) in a cooling labor market, a quarter of executives believe that AI could perform all or most tasks currently handled by entry-level staff.

Susan Taylor-Martin, CEO of BSI, commented: “AI offers significant opportunities for companies worldwide. However, as firms strive for enhanced productivity and efficiency, we must remember that humans ultimately drive progress.

“Our findings show that balancing the benefits of AI with supporting the workforce is a key challenge of this era. Alongside our AI investments, long-term thinking and workforce development are crucial for sustainable and productive employment.”

Additionally, 39% of leaders reported that entry-level roles have already been diminished or eliminated due to the efficiencies gained from AI in tasks like research and administration.

More than half of the respondents expressed relief that they commenced their careers before AI became prevalent, yet 53% felt that the advantages of AI in their organizations outweigh the disruptions to the workforce.

UK businesses are rapidly embracing AI, with 76% of leaders anticipating that new tools will yield tangible benefits within the next year.

Executives noted that the primary motivations behind AI investments are to enhance productivity and efficiency, cut costs, and address skills gaps.

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An analysis from BSI of companies’ annual reports revealed that the term ‘automation’ appeared almost seven times more frequently than ‘upskilling’ or ‘retraining.’

Additionally, a recent poll from the Trades Union Congress found that half of British adults are apprehensive about AI’s impact on their jobs, fearing that AI may displace them.

Recent months have seen the UK’s job market cool, with wage growth decelerating and the unemployment rate rising to 4.7%, the highest in four years. Nevertheless, most economists attribute this not to a surge in AI investments.

Conversely, there are worries that the inflated valuations of AI companies could spark a stock market bubble, potentially leading to a market crash.

Source: www.theguardian.com

NOAA Speeds Up Hiring for Forecast Positions Following National Weather Service Cuts

As some weather forecast offices discontinue overnight staffing, the National Weather Service is swiftly reassigning personnel internally, working to fill over 150 vacancies and address critical staffing gaps.

On Tuesday, the National Oceanic and Atmospheric Administration considered initiating a “reallocation period” to fill key positions that have remained unstaffed since the Trump administration’s decisions to dismiss probationary employees and incentivize veteran federal workers to retire early within the National Weather Service (NWS).

The agency is actively recruiting to fill five pivotal meteorologist roles overseeing field offices, including locations in Lake Charles, Louisiana; Houston, Texas; and Wilmington, Ohio.

Meanwhile, at least eight out of 122 weather forecasting offices nationwide—including those in Sacramento, California; Goodland, Kansas; and Jackson, Kentucky—have announced no plans to operate overnight or reduce overnight services in the coming six weeks, according to Tom Fahy, legislative director of the National Weather Service Employees Organization, which monitors staffing levels for the agency.

Critics of the recent cuts argue that the efforts to reassign meteorologists and other staff indicate severe reductions in services, negatively impacting vital public safety operations.

“This has never occurred before. We have always been an agency dedicated to providing 24/7 service to American citizens,” Fahy stated. “The potential risk is extremely high. If these cuts continue within the National Weather Service, lives could be lost.”

The National Weather Service acknowledged adjustments to its service levels and staffing but asserted that it continues to fulfill its mission and maintain the accuracy of forecasts.

“NOAA and NWS are dedicated to minimizing the impact of recent staffing changes to ensure that core mission functions persist,” the agency stated. “These efforts encompass temporary modifications to service levels and both temporary and permanent internal reallocations of meteorologists to offices with urgent needs.”

Fahy revealed that 52 of the nation’s 122 weather forecasting offices currently have staffing vacancy rates exceeding 20%.

The latest update on field office leadership, published on Wednesday, highlighted vacancy challenges, with 35 meteorologist positions at forecast offices remaining unfilled.

Since the new administration assumed power, the National Weather Service has reduced its workforce by more than 500 employees through voluntary early retirement packages for senior staff and the dismissal of probationary hires.

“Our greatest fear is that the weather offices will remain extremely understaffed, prompting unnecessary loss of life,” the director expressed earlier this month.

Recently retired NWS employees have voiced concerns that staffing levels have dropped below critical thresholds amid service freezes and the dismissal of many early-career professionals in probationary roles.

Alan Gerald, a former director at NOAA’s National Intensive Storm Institute who accepted early retirement in March, likened the NWS’s reassignment strategies to “deck chair relocation,” arguing that they fail to solve fundamental issues.

“They are merely shifting personnel from one office to another, which might address short-term crises, but that’s no sustainable solution,” Gerald remarked. “There’s no real influx of new staff.”

Brian Lamare, who recently retired from the Tampa Bay Area Weather Office in Florida, understands the desire to modernize and streamline services.

In fact, Lamare was involved in efforts to reorganize certain aspects of the service prior to the Trump administration.

The agency had plans to modernize its staffing structures by launching a “mutual assistance” system, allowing local forecast offices to request and offer aid during severe weather events or periods of understaffing.

“Many of these initiatives are now being expedited due to urgency,” Lamare commented. “When rearranging your living room furniture, you don’t set the house on fire—that’s the situation we are facing.”

Lamarre emphasized the necessity for the NWS to resume hiring as numerous forecasters in their 50s and 60s opted for voluntary retirement, leading to the loss of extensive experience. Concurrently, the agency has reduced its cohort of probationary employees, many of whom are just starting their careers.

“Eliminating probationary positions severely limits the agency’s future potential,” Lamare stated. “That’s where fresh, innovative talent is cultivated, making recruitment essential.”

Source: www.nbcnews.com

Reducing Bias, Improving Recruitment: How AI is Revolutionizing Hiring for Small Businesses

Artificial intelligence is trained on human-created content, known as actual intelligence. To train AI to write fiction, novels are used, while job descriptions are used to train AI for writing job specifications. However, a problem arises from this approach. Despite efforts to eliminate biases, humans inherently possess biases, and AI trained on human-created content may adopt these biases. Overcoming bias is a significant challenge for AI.

“Bias is prevalent in hiring and stems from the existing biases in most human-run recruitment processes,” explains Kevin Fitzgerald, managing director of UK-based employment management platform Employment Hero. The platform utilizes AI to streamline recruitment processes and minimize bias. “The biases present in the recruitment team are embedded in the process itself.”

One way AI addresses bias is through tools like SmartMatch offered by Employment Hero. By focusing on candidates’ skills and abilities while omitting demographic information such as gender and age, biases can be reduced. This contrasts with traditional methods like LinkedIn and CVs, which may unintentionally reveal personal details.

AI helps businesses tackle bias when screening for CVs. Photo: Fiordaliso/Getty Images

Another concern is how AI processes information compared to humans. While humans can understand nuances and subtleties, AI may lack this capability and rely on keyword matching. To address this, tools like SmartMatch evaluate a candidate’s entire profile to provide a holistic view and avoid missed opportunities due to lack of nuance.

SmartMatch not only assists in matching candidates with suitable roles but also helps small businesses understand their specific hiring needs. By analyzing previous hires and predicting future staffing requirements, SmartMatch offers a comprehensive approach to recruitment.

Understanding SME needs and employment history allows SmartMatch to introduce you to suitable candidates. Photo: Westend61/Getty Images

By offering candidates the ability to maintain an employment passport, Employment Hero empowers both job seekers and employers. This comprehensive approach to recruitment ensures that both parties benefit from accurate and efficient matches.

For small and medium-sized businesses, the impact of poor hiring decisions can be significant. By utilizing advanced tools like SmartMatch, these businesses can access sophisticated recruitment solutions previously available only to larger companies.

Discover how Employment Hero can revolutionize your recruitment process.

Source: www.theguardian.com