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ILO Warns Early AI Adoption Is Squeezing Entry-Level Jobs for Graduates

Employer expectations of displacement from task automation underscore the urgency of rapid reskilling, robust oversight.

Overview

  • In its 2026 outlook, the ILO says young university graduates face heightened exposure to automation, reducing access to roles aligned with their studies.
  • Stanford data through November 2025 show entry-level postings for 22–25-year-olds in AI-exposed occupations fell an average 16%, with experienced hiring steady and impacts centered on openings rather than wages.
  • The ILO estimates about 25% of jobs worldwide are likely to be transformed by generative tools, with changes concentrated at the task level rather than entire occupations.
  • A World Economic Forum survey finds 54.3% of business leaders expect significant displacement from AI, versus 23.5% who anticipate many new jobs.
  • Labor-quality gains have stalled, with global unemployment near 4.9% but 284 million workers in extreme poverty and informality at 57.7%, as separate Peruvian polling shows 44% already using generative AI but only 26% receiving formal training.