As artificial intelligence reshapes the global economy, nonprofit organizations like Goodwill Industries are bracing for a surge in demand for their services, particularly from younger workers displaced by automation. Steve Preston, CEO of Goodwill Industries International, recently highlighted this looming challenge in an interview with Fortune, warning that AI’s rapid adoption could exacerbate an already brewing youth unemployment crisis. With over 2 million job seekers utilizing Goodwill’s employment programs last year, Preston anticipates a significant influx of Generation Z individuals, many of whom may find traditional entry-level roles vanishing as companies automate routine tasks.

This concern is not isolated. Recent data from sources like the Business Insider, citing Goldman Sachs analysis, shows that since early 2024, unemployment rates for 20- to 30-year-olds in tech sectors have risen faster than the overall jobless rate, underscoring AI’s disproportionate impact on early-career professionals. Preston emphasized that while tech leaders often downplay AI’s potential to cause mass job losses, the reality on the ground tells a different story, with automation targeting the very positions that serve as on-ramps for young workers.

AI’s Assault on Entry-Level Opportunities: A Generational Shift in Employment Dynamics

The erosion of entry-level jobs is particularly acute in fields like software development, customer service, and administrative support, where AI tools can perform tasks with unprecedented efficiency. A Stanford University study, detailed in the San Francisco Chronicle, reveals a 13% drop in such roles for 22- to 25-year-olds in AI-exposed industries since the rise of generative technologies. This trend aligns with warnings from AI pioneers, including Roman Yampolskiy, a computer science professor who predicted in a Business Insider piece that up to 99% of workers could be jobless by 2030, with no career path entirely safe.

Compounding the issue is a gender disparity in unemployment rates. According to Fortune, young men aged 20 to 24 have experienced elevated joblessness since the COVID-19 pandemic, while women in the same cohort are gravitating toward “AI-proof” sectors like healthcare. Posts on X (formerly Twitter) echo this sentiment, with users noting a stark divide: some young graduates command high salaries in AI-related roles, while others face prolonged unemployment, as highlighted in discussions around a Databricks executive’s comments on seven-figure earnings for AI-savvy 22-year-olds.

Nonprofits Step Up Amid Economic Upheaval: Preparing for a Wave of Displaced Youth

Goodwill’s response involves scaling up its job training and placement programs, which focus on reskilling workers for roles less susceptible to automation, such as those requiring human interaction or specialized trades. Preston told Fortune that the organization is already seeing signs of a youth unemployment crisis, with Gen Z facing barriers like remote work reductions and hiring freezes in tech-heavy industries. This mirrors broader reports from the World Economic Forum, which notes AI’s role in widening global talent pools while diminishing local entry-level opportunities.

Industry analysts, including those from Anthropic, warn of even steeper disruptions. In a report covered by Fortune, CEO Dario Amodei suggested AI could eliminate nearly 50% of entry-level white-collar jobs, a prediction that resonates with X posts from users like tech commentators who describe a “generational squeeze” where innovation stalls due to a lack of young talent pipelines. Tech firms have seen a 50% drop in young workers over two years, per WebProNews, raising alarms about long-term diversity and creativity in the sector.

Policy and Adaptation Strategies: Navigating the AI-Driven Job Market Turmoil

To mitigate these effects, experts advocate for policy interventions like universal basic income or enhanced vocational training, though progress remains slow. Bill Gates, in comments reported by AOL, cautioned that even proficiency in AI might not shield Gen Z from job scarcity. On X, conversations amplify fears of an “identity crisis” as GDP grows amid rising unemployment, with users referencing Anthropic’s forecasts of 10-20% joblessness in coming years.

For industry insiders, the takeaway is clear: companies must balance AI efficiencies with investments in human capital to avoid deepening social divides. As Preston urges in his BizToc interview, addressing this crisis requires proactive collaboration between tech firms, governments, and nonprofits. Without it, the influx of jobless youth could strain social safety nets, potentially leading to broader economic instability in the years ahead.