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Weekly Newsletter Vol. 92 - June 4, 2025

Generating your Lead Story…

If AI Replaces Entry-Level Jobs, Who Will Be Left to Buy?

There’s a question that’s been keeping me up at night and I know many of you in the recruitment and hiring space are thinking about it too. We keep hearing that AI is going to make business more efficient, automate the repetitive tasks, and free up time and resources.

And yet, as recruiters, we’re already seeing the early signs of a shift that should give us all pause.

If AI continues to replace entry-level jobs at scale, who exactly will be left to buy the products and services that businesses are working so hard to sell?

Let’s talk about what’s really happening out there.

Take fast food, for example. Some chains now have AI-powered drive-thru assistants, self-ordering kiosks, and robotic fry stations. The technology is impressive. But each of those tools can reduce the need for human workers and those workers are often people in the earliest stages of their careers.

It doesn’t stop there. Call centers are rolling out AI chatbots and voice response systems at a rapid pace. Junior administrative roles are shrinking as generative AI tools help executives write emails, summarize meetings, and schedule appointments. Even in logistics, automated warehouses and drone deliveries are cutting headcount in jobs that used to be reliable entry points into the workforce.

Now, let’s play that forward.

If we reach a point where unemployment climbs to 10%, 15%, or even 20% due to automation, it’s not just a workforce issue, it becomes an economic crisis. Because people without jobs aren’t just job seekers, they are customers. They are renters. They are grocery buyers. They’re the people who fill restaurants, shop online, stream content, buy clothes, and upgrade their phones.

If they’re out of work, they stop spending. And if they stop spending, the same companies that replaced them with AI will see a new kind of problem: demand dries up. The economy slows down, not because we can’t produce things efficiently, but because too few people have the income to participate.

As recruiters, we sit at the center of this dynamic. We’re watching roles disappear, get redefined, or move offshore. And the pressure is rising for candidates to “upskill” faster than ever before. But that leaves a big gap—what about people who aren’t coders, engineers, or digital marketers? What about the millions of people who do essential work that isn’t glamorous or “future-proof,” but who still deserve meaningful employment?

The recruitment industry must be part of the solution. That means:

Helping companies think differently about hiring. Can entry-level jobs become stepping stones with built-in learning pathways instead of dead ends?

Focusing on job creation, not just job replacement. Can businesses reinvest the cost savings from automation into new roles focused on people, community, or innovation?

Advocating for responsible workforce planning. Can we work with clients to design hiring strategies that prioritize inclusivity, stability, and long-term growth?

This isn’t about resisting AI—it’s about building a sustainable future where technology and people thrive together. The hiring process of tomorrow can’t just be faster and cheaper. It has to be fairer, more thoughtful, and more focused on the big picture.

So what can we do right now?

I want to do my part.

Let’s continue to have the hard conversations. Let’s advocate for smarter hiring. And let’s keep lifting each other up along the way.

We're not just recruiters—we're architects of the future workforce.

You can’t make this stuff up

_{(*Disclaimer: these are real experiences provided by RME's community of job seekers and hiring managers)}

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