Artificial intelligence (AI) is having a profound impact on Australia’s job market, with many employers warning that it could lead to significant job losses, particularly among entry-level workers.
A recent data science graduate, Tien Hung Nguyen, faced an uphill battle in securing his first full-time job, completing 30 applications and an internship before landing the position. His friends are still struggling to find work, with many citing AI as a major reason for the shortage of jobs.
In countries where AI is more advanced, such as the US, lay-offs have become increasingly common, with Amazon warning of looming job losses. Microsoft is also preparing to cut staff whose tasks can be completed by AI.
The rise of AI has led to a concerning trend in youth unemployment, with the rate for recent college graduates nearing 6% in the US and rising to 9.2% in Australia. Economists warn that young people are more vulnerable to job losses when the economy takes a downturn.
However, not all experts view AI as a threat to employment. Dr Leonora Risse argues that while some jobs may be replaced by automation, it can also lead to higher productivity and wages for workers who are able to adapt.
The key is finding new industries where human skills are still in demand, such as the care and community sector, which is growing due to an aging population. AI will likely replace routine roles, but there will always be white-collar jobs available for skilled candidates.
As AI continues to advance, companies must find ways to work with automation to minimize job losses and maximize productivity gains. The next few years are expected to be challenging for the job market, but with careful planning and adaptation, workers can thrive in a world where technology is increasingly prevalent.
Source: https://www.abc.net.au/news/2025-06-21/ai-job-fears-accelerate-white-collar-grad-roles-threatened/105440772