AI Is Not Replacing Workers, But It Is Breaking the Pipeline
The story most often told about AI and jobs is one of mass replacement. The reality looks different and in some ways more damaging. Only a small fraction of recent layoffs have been directly attributed to AI. What AI is actually doing is reshaping hiring behavior in ways that quietly undermine the workforce. The most striking effect is at the entry level. Rather than replacing existing workers, AI is being used as a justification to stop hiring new ones. Service firms have implemented hiring freezes tied to AI far more often than they have eliminated jobs outright. This shifts risk away from companies and onto workers trying to enter the labor market. Graduates Caught in the Middle The consequences are already visible. Recent college graduates face elevated unemployment and widespread underemployment. The traditional on-ramp into professional life is eroding. Entry level roles that once trained workers, built experience, and transmitted institutional knowledge are disappearing....