This episode explores the stark dichotomy between the optimistic promises of AI for Gen Z and the challenging realities unfolding in the tech job market. This tension highlights whether AI is truly a tool for empowerment or a catalyst for widespread workforce disruption.
Sources:
https://gizmodo.com/as-fears-about-ai-grow-sam-altman-says-gen-z-are-the-luckiest-kids-in-history-2000641410
https://www.nytimes.com/2025/08/10/technology/coding-ai-jobs-students.html
Brad Lightcap and Ronnie Chatterji on jobs, growth, and the AI economy — the OpenAI Podcast Ep. 3: https://www.youtube.com/watch?v=XHqC70la8Xc
Midyear update: 2025 AI predictions:
https://www.pwc.com/us/en/tech-effect/ai-analytics/ai-predictions-update.html
Artificial Intelligence and Jobs: Evidence from Online Vacancies:
https://shapingwork.mit.edu/wp-content/uploads/2023/10/Paper_Artificial-Intelligence-and-Jobs-Evidence-from-Online-Vacancies.pdf
The Impact of AI on the Job Market and Employment Opportunities:
https://onlinedegrees.sandiego.edu/ai-impact-on-job-market/
Tech layoffs 2025: How Microsoft, Google, and Meta are plotting for the AI era:
https://fortune.com/2025/07/16/tech-layoffs-2025-how-microsoft-google-meta-amazon/
On one hand, industry leaders like Sam Altman, CEO of OpenAI, champion AI as a transformative force, dubbing Gen Z the "luckiest kids in history" because AI tools can amplify their skills, automate routine tasks, and foster innovation. The optimistic vision suggests AI will lower barriers to entry in tech, enabling young coders to upskill rapidly and contribute meaningfully from day one, potentially creating "super well-paid, super interesting" new jobs.
However, this hopeful outlook is sharply contrasted by mounting evidence of significant job displacement and a struggling tech employment landscape:
• Massive Tech Layoffs: As of mid-2025, over 61,000 tech jobs have been cut across the industry, with major players like Amazon, Microsoft, and Google leading the charge. These reductions are often framed as strategic shifts towards AI-driven efficiency, prioritizing automation over workforce retention despite strong revenue growth.
• High Unemployment for CS Grads: Recent data from the Federal Reserve Bank of New York indicates that Computer Science and Computer Engineering majors (ages 22-27) face some of the highest unemployment rates, at 6.1 percent and 7.5 percent respectively. This is more than double the 3 percent unemployment rate seen in fields like biology and art history.
• Displacement of Mid-Level and Entry-Level Roles: A 2023 study in the Journal of Labor Economics found that establishments integrating AI tend to reduce hiring in non-AI positions, correlating with a 15-20% reduction in mid-level coding jobs over five years. AI coding assistants are particularly impacting entry-level positions that new graduates would typically seek, reducing the need for junior software engineers.
• Leaner, Specialized Workforce: Firms demanding AI skills offer wage premiums but show reduced overall hiring, indicating a shift towards a more specialized workforce.
The struggles of recent graduates are particularly poignant. Stories abound of students like Manasi Mishra, a Purdue CS graduate, who, despite years of dedicated study, struggled to find tech jobs and even received an interview call from Chipotle. Zach Taylor, an Oregon State CS graduate, applied to nearly 6,000 tech jobs since 2023 with no full-time offers, even being rejected by McDonald's for "lack of experience". Many describe their job searches as "bleak," "disheartening," or "soul-crushing," feeling "gaslit" about their career prospects.
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