Young US men are leaving workforce as AI threatens entry-level jobs

The share of young American men participating in the labour market has fallen sharply over the past two decades, raising concerns that artificial intelligence could accelerate a broader retreat from work, according to an analysis published by the New York Post. The trend comes despite a relatively strong headline unemployment rate and growing demand for workers in some sectors.

The U.S. unemployment rate fell to 4.1% in July, its lowest level of the year and well below the post-World War II average of 5.6%. But the labour force itself shrank by more than 250,000 people from a year earlier, reaching its lowest level since the pandemic, according to the Post.

Young men are among the groups drawing particular attention. The labour-force participation rate for men aged 16 to 24 fell to 56.1% in July, down from 69% in 2000, according to Bureau of Labour Statistics data cited by the newspaper.

The share of unemployed young men who are not actively looking for work has also doubled since the 1990s to 8%, said Ben Smith, head of research at the American Institute for Boys and Men. Researchers are increasingly focused on this group because remaining outside the workforce for extended periods can make it harder to develop professional skills, experience and networks.

Artificial intelligence could add another layer of pressure. According to Challenger, Gray & Christmas, AI has been cited in 184,538 layoff announcements since 2023. While technology executives have argued that AI will eventually generate new employment opportunities, the technology is expected to disrupt many entry-level positions in sectors such as technology, finance and manufacturing.

Smith warned that the impact remains uncertain, but said, “if it substitutes for those jobs entirely, men and the occupations they tend to be in are more susceptible to being displaced by AI.”

Maria Flynn, chief executive of nonprofit Jobs for the Future, said entry-level hiring is already being affected across retail, manufacturing and white-collar industries.

“The longer the individuals sits out of the labour market, particularly early in their career, the harder it’s going to be for them to build the skills and the network and the work experience that really shape earnings in future decades,” Flynn told the New York Post.

The decline has not affected all demographic groups equally. Labour-force participation among people aged 65 and older rose to 19.2% in July from 12.5% in 2000. Men aged 25 to 54 experienced a much smaller decline, while participation among older men slightly increased.

Women have also increasingly outperformed men in the labour market. Women now hold slightly more U.S. jobs than men for the third time in history, according to Indeed Hiring Lab data cited by the Post.

At the same time, some younger Americans are turning toward skilled trades as an alternative to white-collar careers threatened by automation. Paul Iaccarino, whose organisation trains electricians in New York, said Gen Z now accounts for 66% of participants in his five-year apprenticeship program.

“A lot of these kids struggle to take off,” Iaccarino said. “There is a fear that it’s not enough, even in the beginning, so why bother? That’s kind of the gist of it.”

He added, “It’s like, ‘Oh, it’s gonna take me forever to make six-figures or whatever I’m going to need to make in order to buy this house,’” and said young men face substantial pressure without a clear path toward overcoming those obstacles.

The broader labour-market shift is also being shaped by the growth of healthcare and social assistance, where women make up a large share of the workforce. Manufacturing and warehousing, traditionally male-dominated sectors, have experienced declines.

Still, the Post cautions that the picture is more complicated than a simple collapse in male employment. Both men and women have lower participation rates than in 2000, and among people aged 20 to 24 who are outside the workforce, women still outnumber men by millions.

The emerging concern is therefore less about whether young American men have already abandoned work altogether and more about whether economic, educational and technological changes are creating a generation increasingly disconnected from the traditional path into employment.

By Sabina Mammadli