With yearly investments in artificial intelligence (AI) applications predicted by the World Economic Forum (WEF) and Bain & Company to reach $1.5 trillion by 2030, the early-stage workforce generation − aged 22 to 27 − risks being lost because of this cutting-edge technology.
This younger work cohort was already badly hit during their final years of school when COVID-19 meant learning and work moved online.
In South Africa, the 2020 matric year has gone down in the annals of history as the “missing” year or “lost cohort” because students lost around half a year of schooling as classrooms were shuttered and alternative schooling solutions were put in place.
Now a paper released on the sidelines of the WEF, happening in Davos this week, warns that this age group risks being further disadvantaged by AI.
In a blog published to coincide with the WEF, Lisa Stevens, chief administrative officer at Aon Corporation, notes that, given AI is changing the way we work at an unprecedented speed, nearly 1.1 billion jobs could be reshaped by the end of the decade.
Stevens cautions that automated entry-level work for efficiency gains risks erasing early-career pathways for those between 22 and 27, which will weaken the future skills pipeline needed for long-term growth.
These young people, primarily Generation Z, are seen as the first generation of true “digital natives”, having grown up with internet access, smartphones and social media as an established part of daily life.
“If automation advances without careful oversight, we could see the emergence of a ‘lost generation’ of early-career talent – an outcome that can be avoided with the right leadership focus and design choices,” says Stevens.
Escalated effect
Stevens notes that automation compounds the challenge those entering the workforce face after the pandemic upended life experiences that built confidence and judgement. “AI threatens to add new pressures on job prospects, mental health and wellbeing.”
In addition, “many young professionals spent critical years in isolation, missing out on in-person learning, mentorship and exposure to complex environments. This gap is fuelling distress among new graduates; 19% of the class of 2026 report feeling ‘very pessimistic’ about the job market,” Stevens writes.
The WEF’s Future of Jobs Report 2025 finds that 92 million existing jobs are expected to be displaced due to automation and changing work patterns. Yet, it also indicates there will be a net increase of about 78 million jobs worldwide by 2030 because AI, automation and digital technologies are creating more new tech-driven roles than they displace.
Early signs of strain are already visible, says Stevens. She points out that in the US, unemployment among early-career talent aged 22 to 27 is at 7.1%, about three points higher than the overall workforce.
Jobs most often cited as being at risk from automation include data entry and clerical work, receptionists, tier one tech support, basic sales positions, as well as junior roles in HR and marketing.
Local view
In 2020, young South Africans now aged around 25 and 26, based on an average matric age of 18 and 19, lost as much as 60% of their school year, Professor Martin Gustafsson, a researcher with the Department of Economics at Stellenbosch University, found in 2021.
The lost year has been attributed to schools closing, a lack of access to online learning for at least 90% of learners, staggered returns by grade and rotational timetables, according to Gustafsson.
In addition, youth unemployment is at crisis levels. Statistics SA’s latest figures, for the third quarter of last year, show that 33.9% of young people between 15 and 24 are not in employment, education or training. For those between 15 and 34, this figure leaps to 42.7%.
For comparison, this data also shows the current overall official unemployment level across South Africa is 32.1%.
This comes as AI is already being widely adopted in South Africa. Research from Zoho, released towards the end of last year, shows that 92.6% of South African businesses have started their AI journey, with 32.7% achieving widespread or advanced implementation.
New entry pathways
Yet Stevens says employers and leaders have an opportunity to reset how this generation is supported, strengthening their career prospects and the economy’s long-term growth and resilience.
“Handled well, this shift has the potential to not only reshape work, but to strengthen how early careers are built and supported.”
To achieve this, organisations must re-centre early-career development on human skills that are core to AI-enabled work, Stevens argues.
“The real imperative is to redesign entry-level roles and modernise early-career pathways in ways that strengthen long-term talent pipelines. This means separating routine tasks from development opportunities – automating repetitive work while preserving and enhancing essential early-career learning,” she writes.
Stevens adds that companies need to prioritise and reward learning agility, curiosity and adaptability, which she says are “traits that are among the strongest predictors of successful AI adoption”.
This will help create a culture where early-career talent see change as an opportunity for growth. Supporting mental health and wellbeing must also be part of this equation, she notes.
Stevens argues that employers have a responsibility to help early-career professionals become, and remain, employable. “This is especially urgent for a generation whose early work and educational experiences were disrupted by the COVID-19 pandemic.”
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