New Zealand Reserve Bank Warns AI Could Hit Youth Jobs as Unemployment Runs Nearly 3 Times Higher
Updated
Updated · RNZ · Sep 6
New Zealand Reserve Bank Warns AI Could Hit Youth Jobs as Unemployment Runs Nearly 3 Times Higher
3 articles · Updated · RNZ · Sep 6
Summary
Reserve Bank policymakers said economic growth may not deliver the usual lift in hiring if businesses prioritize efficiency and technology investment, raising concern that AI could displace some graduate and entry-level roles.
Governor Anna Breman told lawmakers the risk looks short term rather than medium term, but said younger workers are especially exposed as some employers may choose AI tools over hiring novices.
Youth unemployment is nearly three times the wider working-age rate, and students and recruiters say graduate openings are scarce while some so-called entry-level jobs already demand one to two years of experience.
Academics and recruiters said the bigger danger is a weakened talent pipeline: if AI takes routine starter tasks, employers may save costs now but struggle to develop future managers, engineers and tradespeople.