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AI And Aging Threaten Workforce Stability, Deloitte Warns

67% of workers believe AI is reducing entry-level roles—reshaping how careers begin before they start.

Allwork.Space News TeambyAllwork.Space News Team
August 26, 2025
in News
Reading Time: 2 mins read
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AI And Aging Threaten Workforce Stability, Deloitte Warns

In the U.S., workforce participation is projected to drop from 63% in 2023 to 61% by 2033, with retirements accelerating and new workforce entrants declining.

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The global workforce is approaching a tipping point, according to new research from Deloitte. As aging populations and declining birth rates shrink labor pools — especially in mature economies — many industries are already struggling to find and retain skilled workers. 

In the U.S., workforce participation is projected to drop from 63% in 2023 to 61% by 2033, with retirements accelerating and new workforce entrants declining. One analysis found that in 2022 alone, two million Americans hit retirement age, while only 40,000 entered “prime working age.”

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AI Threatens Entry-Level Jobs as Automation Ramps Up

At the same time, AI adoption is accelerating and it’s replacing roles. Sixty-seven percent of workers surveyed believe AI is reducing the number of entry-level opportunities, creating new barriers for younger workers trying to enter the job market. In sectors like computer science, where early-career jobs once flourished, automation is now outpacing demand.

Skilled Trades Face Shortages Amid a Misaligned Education Pipeline

This labor squeeze is being made worse by a growing skills mismatch. Many of the most in-demand jobs — such as welders or skilled trade workers — require only a high school education, yet the majority of U.S. graduates are still pursuing college, leaving critical frontline roles unfilled. In some cases, employers report receiving just one qualified applicant for every 20 job openings.

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Younger Workers Embrace AI While Older Generations Struggle to Keep Up

AI is also reshaping how teams work. Most employees still prefer human collaboration, especially for complex tasks and feedback. But younger workers are increasingly turning to AI for speed, with the youngest age group (18–24) saying AI helps them work faster across nearly every task type. 

This contrast is sharpening generational divides: older employees value teamwork but feel unprepared to use AI, while younger staff embrace AI tools but risk losing traditional on-the-job training as automation eliminates basic tasks.

Organizations Must Rethink Workforce Strategy to Stay Competitive

Deloitte’s analysis points to an urgent need for organizations to adopt more integrated workforce strategies — ones that treat AI not just as a tool, but as a teammate. As technology becomes more embedded in daily operations, companies that fail to bridge these generational and skills gaps may find themselves unprepared for the demands of the next decade.

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Source: Deloitte
Tags: AINorth AmericaWorkforce
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Allwork.Space News Team

Allwork.Space News Team

The Allwork.Space News Team is a collective of experienced journalists, editors, and industry analysts dedicated to covering the ever-evolving world of work. We’re committed to delivering trusted, independent reporting on the topics that matter most to professionals navigating today’s changing workplace — including remote work, flexible offices, coworking, workplace wellness, sustainability, commercial real estate, technology, and more.

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