Thrift Stores+: "Goodwill CEO says he’s preparing for an influx of jobless Gen Zers because of AI—and warns, a youth unemployment crisis is already happening"

From Fortune, September 21:

Over 2 million job seekers used Goodwill's employment services last year—and the charity's CEO Steve Preston says it's gearing up for an influx of unemployed Gen Z thanks to AI. 

Tech leaders have been quick to squash claims that their AI firms could one day cause significant unemployment. But Goodwill’s CEO Steve Preston says it’s already happening. 

The charity, which has over 650 job centers, saw over 2 million people use its employment services last year—and it’s getting ready for even more.

“We are preparing for a flux of unemployed young people—as well as other people—from AI,” the CEO exclusively told Fortune, adding that automation will hit low-wage and entry-level roles the worst.  

The 65-year-old, who formerly served as the 14th United States secretary of housing and urban development, revealed that he’s already witnessing “large organizations beginning to make significant layoffs based on a move to AI.”

Call centers and sales roles are being particularly hard hit right now, he added. “I don’t know that it’ll be catastrophic, but I do think we’re going to see a significant reduction in a number of jobs. I think it’s going to hit low wage workers especially hard.” 

Although people of all ages hold lower-paying jobs, they’re often a rite of passage for fresh-faced students starting out in the world of work.  

“It’s much harder to find a job, Preston adds. “It’s really hitting college students right now in the marketplace. It’s really hitting young adults without college degrees.”

Gen Z non-grads are finding themselves worst hit by unemployment—

but they won’t be the only ones impacted

Despite numerous reports warning that the higher education payoff is dead—essentially, thanks to more inclusive skills-based hiring, there’s no point getting a degree anymore and Gen Zers without one are winning the talent war—Preston is seeing the complete opposite.

“What I’m seeing is of the overall unemployment, people without college degrees have no jobs,” he said. Research has shown that the issue is even more acute for young men. 

“That is a terrible thing,” Preston said, while sympathising with young people on how crucial it is to see a world where they can grow and thrive. “For young people at that point in their life, to attach to something where they can see a future is so important, where they can envision their lives going forward.”

And as AI and automation gets smarter, eventually those with degrees will also find landing that first job increasingly impossible—and according to Preston, that’ll have a knock-on effect on more senior roles too.....

....MUCH MORE 

He'd be in a better position to spot the trend than I am.