Goodwill CEO Warns of AI-Driven Youth Unemployment Crisis

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 | Fortune

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." 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. It's not just AI could replace many of those mid-level roles, but also that there could be a lack of suitable talent coming up through the pipeline. "Those entry-level roles were the places where they learned the foundations of a job -- where they built core skills, where they had an opportunity to be mentored, and grew up in the organization," he explained. Gen Z students are already struggling with feeling unprepared for the world of work because of a lack of work experience opportunities available, like internships, and that issue will only get more exuberant thanks to AI. Instead of getting drowned out by the tech wave, Preston advises young people to ride it. He said that Goodwill is often talking to employers to find out which skills will actually be required tomorrow. "Digital skills are really critical," he added. "We often think that if somebody's on their phone all day and has 15 apps open at all times has great digital skills, but it's a very different thing." While you're TikTok editing game might be strong, Preston said that young people really need to master the tech tools workplaces actually use, from Microsoft Excel to Google Docs. "We consistently find that if people get a certain level of attainment with digital skills, the door is open wide -- and many people that we assume have those skills, do not." The next step is learning how to use the likes of ChatGPT and Gemini. "Increasingly, no surprise, people who are proficient in using AI tools are beginning to leapfrog other people going into the marketplace." Meanwhile, for Gen Zers who don't want to go down the corporate career path, he suggested learning clean tech skills, like solar panel installation and EV charging station maintenance, as they're prime areas for growth without a degree needed. And Preston has a stark warning for millennials who refuse to adapt: "If you are someone seeking a job in your 30s -- or even 40s -- and you haven't acquired those skills, you're pretty much locked out of a massive percentage of the jobs that are available in the marketplace". "When those people get those skills, we just see the doors busting open," he added. "I can think of two women off the top of my head, who went from being homeless to jobs in Accenture and Google, after going through extensive digital boot camps...It's never too late."

AI is reshaping jobs fast: CEO of a skill training firm warns Gen Z about hidden risks if they don't adapt to new digital skills

Goodwill CEO Steven Preston warns that AI-driven layoffs are already affecting entry-level jobs, particularly hitting Gen Z non-graduates hardest. He explains that these roles traditionally provide foundational skills and mentorship, and their decline could disrupt career pipelines across industries. Preston urges young people to master digital tools and AI platforms like ChatGPT and Gemini, while exploring emerging fields such as clean tech, emphasizing that adapting skills now is key to long-term employability and success.