Synthetic intelligence is hitting some components of the job market, the Irish authorities shared in a report on Wednesday, with a very massive affect on younger employees.
Based on the Irish Division of Finance’s Economic Insights paper, Irish sectors with the best focus of jobs in danger from AI integration noticed “considerably weaker employment development than sectors with decrease relative publicity” over the previous two years. Essentially the most at-risk sectors had been monetary companies and data and communication applied sciences, each of which noticed solely round 4% jobs development between 2023 and 2025, whereas the low-risk sectors noticed greater than 6% development.
Employment development was particularly worse for younger employees. Though the general employment in these high-risk sectors was decrease in comparison with different classes, it nonetheless continued to develop. However for younger employees aged 15-29 in high-risk sectors, job development truly declined by 1 %.
Within the tech sector particularly, employment amongst 15-29 12 months olds fell by greater than 20%, whereas employment for 30-59 12 months olds grew by 12%. Sectors with much less publicity to AI didn’t present an identical distinction between younger and older employees; in actual fact, employment development for youthful employees outpaced older employees in some low-risk classes.
The findings are “in step with worldwide proof which means that AI adoption is having its most pronounced affect on entry-level and junior workers in extremely digitalised sectors,” the report mentioned.
The primary main proof pointing in direction of this development got here in August 2025 within the type of a Stanford study. The researchers discovered that employees between 22 and 25 years previous in essentially the most AI-exposed jobs skilled a 13% relative decline in employment, whereas employees in much less uncovered fields or extra skilled employees in the identical fields loved steady or rising traits.
AI has been deployed to various levels of success in lots of sectors, starting from tech to medicine and corporate recruitment, despite the fact that the jury continues to be out on how a lot and how briskly it could truly improve productivity.
However early-career employees may have jobs which are simpler to automate, resulting in a development deemed troubling by consultants.
Entry-level jobs assist younger employees prepare of their area, develop their resumes, and construct the foundations of their careers and future financial safety. When these routes are taken away, not solely does this threaten the way forward for the workforce, but it surely additionally widens inequality as these with entry to elite internships and networking get an higher hand.
“There’s a actual worry that I’ve that a complete cohort, these graduating throughout the early AI transition, could sort of be a misplaced era,” Cornell affiliate professor John McCarthy told Gizmodo final 12 months.
Nonetheless, many consultants have voiced their perception that an impending AI-driven job market disaster is definitely only a selling point for Silicon Valley, and a device bosses wield against workers. In the meantime, the companies which have laid off workers and blamed AI have been accused of utilizing the expertise as a scapegoat.
However the Irish report finds that “AI-related labour market changes have occurred primarily by adjustments in hiring and entry, relatively than by the displacement of present employees.”
Many corporations have been vocal about this hiring slowdown. The CEOs of each Shopify and Duolingo have put in company-wide “AI-first, new human employee second” mandates, whereas PwC’s world chairman mentioned the corporate had scrapped earlier plans to rent 100,000 individuals by 2026, as a result of “now we have artificial intelligence.”
“Youthful employees usually tend to be concentrated in entry-level or junior roles the place duties could also be extra simply automated,” the report concluded. “As well as, it’s doubtless that it’s simpler for companies to handle headcount by slowing or pausing new recruitment, relatively than making present workers redundant, given the potential prices related to redundancies.”
It’s additionally doubtless that the development is a mix of each cyclical graduate recruitment elements and the affect of AI, the report mentioned, relatively than being solely pushed by the latter.
Stateside, the younger graduate job market can also be going by its personal trials and tribulations, however American officers have been extra hesitant guilty AI than their Irish counterparts. Essentially the most overt assertion on the matter was in September, when Fed Chair Jerome Powell mentioned in a press briefing that though there’s nonetheless nice uncertainty over the hyperlink between AI and unemployment, he believed that AI is “most likely an element,” particularly with regards to the large unemployment charges confronted by younger graduates.
However Eire may very well be a singular early take a look at case of AI’s affect on the job market. Employment in high-risk sectors like tech and monetary companies makes up a giant portion of the Irish economic system, the report mentioned, with roughly 63% of the job market uncovered to AI. The report additionally discovered that the share of job postings mentioning AI virtually doubled since 2024, and is presently round 3 times the share of mentions within the U.S.
“This speedy tempo of development, mixed with the dimensions of AI-related expertise demand, means that Eire’s labour market is on the world frontier of AI adoption, and as such is more likely to be among the many first international locations to face extra widespread AI-driven labour market disruption,” the report says.
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