The widespread adoption of Artificial Intelligence (AI) is significantly disrupting the job market for entry-level workers. Canadian tech companies like Open Text Corp. and Shopify Inc. are implementing 'AI-first strategies,' leading to job eliminations and a demand for AI fluency in new hires. This trend is exacerbating challenges in Canada's youth labour market, contributing to higher unemployment rates for recent graduates and raising concerns among experts about the loss of foundational learning experiences. Universities are urged to adapt by focusing on developing human skills such as critical thinking and context awareness.
AI adoption is upending the job market for entry-level workers
Business
AI Summary
TL;DR: Key points with love ❤️The widespread adoption of Artificial Intelligence (AI) is significantly disrupting the job market for entry-level workers. Canadian tech companies like Open Text Corp. and Shopify Inc. are implementing 'AI-first strategies,' leading to job eliminations and a demand for AI fluency in new hires. This trend is exacerbating challenges in Canada's youth labour market, contributing to higher unemployment rates for recent graduates and raising concerns among experts about the loss of foundational learning experiences. Universities are urged to adapt by focusing on developing human skills such as critical thinking and context awareness.
Trending- 1 2005: Baseline for postsecondary graduate unemployment rate comparison
- 2 2023/24 academic year: Statistics Canada reported 14.6% of people in late twenties not in employment, education or training
- 3 April: Shopify Inc. CEO Tobi Lütke issued memo on AI
- 4 Last month (May 2025): Open Text Corp. CEO Mark J. Barrenechea outlined corporate realignment
- 5 First quarter of 2025: Unemployment rate for postsecondary graduates under 25 was 11.2%
- Elimination of hundreds of jobs at Open Text Corp.
- Fewer stepping-stone jobs and higher-level responsibilities for recent graduates
- Increased unemployment rate for postsecondary graduates under 25 (11.2% in Q1 2025)
- Potential loss of foundational learning experience and critical thinking skills for new workers
- Universities adapting curricula to focus on human skills
What: The adoption of Artificial Intelligence (AI) is fundamentally changing the job market, particularly for entry-level positions, resulting in fewer junior roles and increased expectations for AI proficiency among new recruits.
When: Open Text Corp. outlined its strategy in a call with investors last month (May 2025). Shopify Inc. issued a memo in April. Statistics Canada reported data for the 2023/24 academic year. The unemployment rate for postsecondary graduates under 25 was reported for the first quarter of 2025.
Where: Canada (Open Text Corp., Shopify Inc., Statistics Canada, Hays Canada, University of Waterloo), globally (major employers), United States (trade war context).
Why: Companies are adopting 'AI-first strategies' to automate tasks, reduce operational costs, and enhance efficiency, thereby decreasing the demand for human labor in repeatable or administrative roles.
How: Companies are eliminating positions that AI can handle, requiring AI fluency for new hires, and prioritizing AI solutions before considering new hires. Universities are responding by emphasizing human skills like critical thinking and context awareness in their curricula.