AI adoption weakens graduate jobs in Ireland as tech employment for young workers falls 20%

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Ireland's finance department reveals AI adoption is already weakening employment opportunities for young graduates, particularly in tech and financial services. Employment among 15 to 29 year-olds in technology firms fell 20% between 2023 and 2025, while prime-age workers saw 12% growth. The findings suggest Ireland may be at the frontier of AI-driven labor market changes, with implications for other advanced economies.

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AI Adoption Reshapes the Irish Labour Market

New research from Ireland's finance department reveals early evidence that AI adoption is weakening employment opportunities in the country's technology-focused economy, particularly affecting graduate jobs

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. The Irish labour market faces relatively higher AI exposure than the average advanced economy due to its concentration of knowledge-intensive roles in tech, science, and financial services sectors

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The data paints a stark picture of declining employment for young workers in sectors with high-AI risk. Employment among 15 to 29 year-olds in the "at risk" cohort fell by 1% between 2023 and 2025, with technology firms showing a dramatic 20% decline

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. During the same period, employment among tech workers aged 30 to 59 grew by 12%, highlighting a sharp generational divide in how AI disruption affects different age groups

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Job Stagnation for Young Workers in High-Risk Sectors

Entry-level tech and finance workers are experiencing the most severe negative impact on job prospects. Sectors with high-AI risk, including financial services, tech, information and communications, experienced significantly weaker employment growth of only 4% between 2023 and 2025

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. In comparison, medium-risk companies saw 4.5% growth, while low-risk sectors like construction and healthcare experienced 6.25% growth

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The research found that in sectors with lower AI exposure, employment growth among younger workers actually outpaced that of older workers, suggesting these trends cannot be explained by a broader downturn affecting young people

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. This pattern indicates the challenges are specific to AI-driven labor market changes rather than general economic conditions.

Ireland as a Case Study for Global AI-Related Labor Market Adjustments

Ireland serves as a critical test case for understanding how job automation affects advanced economies. The country of 5.3 million people hosts a high concentration of international tech, banking, and insurance conglomerates

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. In November 2025, over 11% of all job postings in Ireland on Indeed referenced AI-related terms, around three times the level recorded in both the U.S. and Europe

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Youth unemployment in Ireland has risen to almost 12%, climbing since the third quarter of 2024

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. This is particularly concerning given that Ireland has the highest share of STEM graduates per capita in the E.U. and is frequently ranked as a top country for AI talent

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. The report notes that "AI-related labour market adjustments have occurred mainly through changes in hiring and entry, rather than through the displacement of existing workers"

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, suggesting companies are using AI to reduce new hiring rather than replacing current employees.

Warning Signs for the United States and Global Markets

The Irish experience may signal what's ahead for other developed economies. Early-career Americans aged 22 to 25 working in the most AI-exposed occupations have experienced a 16% relative decline in employment, according to research from the Stanford Institute for Economic Policy Research

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. Microsoft AI chief Mustafa Suleyman warned that all white-collar jobs involving "sitting down at a computer" will be automated by AI within the next 18 months

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Even more measured voices like Anthropic CEO Dario Amodei have projected that AI could eliminate half of all entry-level, white-collar jobs within five years

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. These predictions align with the substitution effects already visible in Ireland's labor market data.

Government Response and Worker Up-Skilling Initiatives

Finance Minister Simon Harris stated that the analysis suggests Ireland may be at the frontier of AI labour market changes and that the government must invest in worker up-skilling and re-skilling in exposed sectors

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. The report's authors recommend policy interventions to support workforce adaptation

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While researchers acknowledged it may be premature to attribute all changes solely to AI-driven substitution effects, the concentrated impact on entry-level positions in technology firms and financial services suggests a clear pattern

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. The Trump Administration in the U.S. has put forward an AI Action Plan involving retraining workers, though details on which industries and demographics will be targeted remain unclear

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. As Ireland's experience demonstrates, the window for proactive intervention may be narrowing as hiring changes accelerate across knowledge-intensive sectors globally.

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