AI is simultaneously aiding and replacing workers, wage data suggest

🎯 Impact Sentiment: Concerning

📋 Summary

• AI is automating tasks that rely on codifiable (textbook) knowledge, hitting entry-level jobs and young workers the hardest, especially in sectors most exposed to AI.
• While job numbers in AI-exposed fields—like computer systems design—are shrinking, wages are actually rising, particularly for experienced workers whose roles rely on tacit, experience-based knowledge.
• The experience premium (wage gap between entry-level and experienced workers) is higher in sectors exposed to AI, meaning experienced employees are seeing more benefit from AI than their younger, less-experienced peers.
• AI-driven disruption is making it tough for new grads and early-career workers to get a foot in the door, forcing companies to rethink how younger talent gains experience when traditional development paths become less viable.

💡 JR Insights

• 💼 Implication: Companies will likely invest less in early-career hires and focus on experienced staff as AI takes over routine, teachable tasks. Career starters need to find new ways to gain relevant experience—internships, apprenticeships, or hands-on projects may become more important than ever.
• 🚨 Risk: If entry-level opportunities dry up, we risk an entire generation struggling to start careers, creating long-term workforce gaps and potentially stalling social mobility. Businesses could end up with a shortage of seasoned talent in the future because fewer people get the chance to learn on the job.
• ✨ Takeaway: If you’re early in your career or helping others launch theirs, focus hard on building experience-based, practical skills that AI can’t easily replicate. For employers, now’s the time to rethink training and mentorship—AI may be great at shortcutting tasks, but there’s still no substitute for real-world wisdom and experience.