A recent survey reveals concerns about AI potentially eliminating 20% of jobs in Australia within two years, alongside declining employee well-being and increased job loss fears, though experts emphasize AI is more likely to redesign jobs and enhance productivity rather than cause widespread unemployment. Emphasizing the importance of AI literacy and uniquely human skills like creativity and critical thinking, industry leaders advise young workers to embrace AI tools to succeed in the evolving job market.
A recent survey by Mercer reveals that most Australian companies anticipate AI will eliminate about 20% of jobs within the next two years. The study also highlights a significant decline in employee well-being, with many workers feeling less engaged and thriving at work. Unequal access to AI training and tools is contributing to this dissatisfaction. However, Deloitte offers a contrasting perspective, suggesting that AI is enhancing productivity by up to 30% and that jobs are being redesigned rather than simply cut.
Rob Hillard from Apex emphasizes that AI is transforming work processes by embedding itself into tasks such as programming and supply chain management, typically working alongside humans rather than replacing them outright. Despite this, there remains caution about the actual evidence of job losses due to AI. The integration of AI is seen more as a partnership that improves efficiency rather than a direct cause of widespread unemployment.
Cynthia Cottrell, Workforce Solutions leader at Mercer Pacific, acknowledges that while restructuring is occurring, not all changes are directly due to AI. She points out that 98% of organizations plan workforce restructures this year, but these are often driven by broader business model changes and market volatility. Importantly, employee fear of job loss has increased significantly, with 40% now worried about losing their jobs to AI, up from 28% in 2024. Despite CEOs expecting headcount reductions, only a minority believe they can effectively integrate humans and machines to boost productivity.
When comparing Australia to the global landscape, Cottrell notes that Australia is not more exposed to AI-related job risks, especially among graduates and early-career roles. In fact, Australia may be ahead in equipping new graduates with AI tools through education, potentially giving its workforce an advantage. This proactive approach to AI literacy in education could help mitigate some of the negative impacts of AI on employment.
For young people entering the workforce, Cottrell advises embracing AI tools and developing skills in creativity, judgment, and critical thinking. She acknowledges the challenges graduates face, including mixed messages about AI use during their education and the increasing importance of AI literacy in hiring decisions. Her message is clear: mastering AI tools alongside honing uniquely human skills will be crucial for future career success in an AI-influenced job market.
