Issue AI thinning junior roles and triggering sectoral shocks

Summary

The report expects that a growing role for AI may reduce the number of junior employees a department needs. This could affect the job market for young graduates from vocational colleges, universities of applied sciences and universities. Shortages in sectors ranging from municipal civil servants to accountants might ease, while graduates who would have entered those fields could face unemployment. Even in sectors where governments want jobs to grow, such as the creative industry, employment may fall because of AI. If demand for certain roles drops steeply in a short time, sudden sectoral shocks such as a technology-driven wave of dismissals could follow, and this factor played a part, alongside other reasons, in the phased layoffs at banks and insurers in recent years. The report also sees AI possibly contributing to more abrupt revaluations of sectors and companies.