Gen Z reconsider degrees as AI rewires career ladders: WEF report
GENEVA, SWITZERLAND — As the world marked International Workers Day on May 1, the spotlight turned to one of the biggest forces reshaping the job market: artificial intelligence. Once viewed as a productivity enhancer, AI is now increasingly considered a disruptor of traditional career pathways, especially entry-level roles.
AI could replace more than 50% of the tasks performed by market research analysts and sales reps, according to Bloomberg, compared to just 9% and 21% for their managerial counterparts. This shift could affect nearly 50 million U.S. jobs in the coming years, narrowing the traditional gateway to white-collar careers.
The World Economic Forum’s Future of Jobs Report 2025 echoes this trend: 40% of employers expect AI to reduce headcount, while others say remaining hires will take on AI-supported roles for lower pay. Gen Z is already taking notice—49% of U.S. job seekers in this cohort believe AI has made their college degrees less valuable.
Offshoring and upskilling reshape the talent game
Beyond automation, U.S. firms are increasingly offshoring to India to reduce labor costs, intensifying competition for skilled roles. While such outsourcing may cut expenses, experts warn it also limits domestic development pipelines and risks shrinking pathways for upward mobility.
Yet amid the disruption, AI could also democratize opportunities. By lowering the technical barriers to entry, generative AI tools can help diverse candidates gain access to roles previously off-limits, according to Charter. Employers are encouraged to rethink hiring models and use AI not just to replace talent but to train it.
Policy shifts aim to future-proof workers
China is extending unemployment protections through 2025. In the U.S., President Donald Trump signed an executive order to create a million apprenticeships annually. Meanwhile, the EU is rolling out a “Union of Skills” plan to prepare workers for the digital and green transitions.
But not all regions are seeing progress. South Korea reported its steepest youth employment drop in 12 years, with nearly 100,000 fewer workers aged 25–29 in Q1 2025.
The message is clear as AI’s impact increases: while career ladders may change, investing in skills—both human and digital—remains the most reliable path to success.
