Young jobseekers struggle as companies demand experience

Young people with artificial intelligence skills are struggling to find work as companies delay recruitment and seek ready-made employees, Yle reports. Artturi Sarvela, 24, has been told repeatedly that he lacks sufficient experience for jobs in his field.

Sarvela, who lives in Oulu, has spent two months applying for permanent positions. He has qualifications in international business and data processing, and says he can work with artificial intelligence and digital tools. For now, he takes occasional jobs to earn money while continuing to look for work in his field.

“There are always many applicants, regardless of the type of position,” Sarvela says. “Often there are also people with five years of experience applying for an entry-level job.”

He says the most common reason employers give for rejecting him is that he does not have enough experience.

Fewer junior positions

Laura Christie, chief executive of recruitment company Academic Work, says the number of junior-level jobs has fallen sharply over the past two or three years.

“After the coronavirus crisis and the brief economic growth that followed, we have entered a steep decline,” Christie says. Jobs aimed at young people, including junior and entry-level positions, have decreased considerably.

The decline has been particularly pronounced in the IT sector, but now affects all industries. Companies are postponing or cancelling recruitment at the final stage, even after a decision to hire has already been made.

Christie says economic uncertainty and companies’ cautious approach are behind the trend. Many companies report good results, but concerns about the future are holding back decisions. Artificial intelligence has also influenced recruitment plans.

“Artificial intelligence may have been the final push at precisely the point when the economy could have started to recover. It made many companies think carefully about whether they should recruit now,” Christie says.

Companies want ready-made skills

Sarvela says employers no longer appear willing to hire young people they can train. Instead, they are looking for candidates who are already fully qualified for the role.

“Companies do not have the opportunity or the desire to train an employee for the job. Long-term investment in employees is hardly being made anymore,” he says.

The situation is unusual because young people entering the labour market often have skills that will be needed in the future. Sarvela has developed artificial intelligence-based chatbots for companies and knows how to use AI in his work.

Christie says Generation Z grew up surrounded by smartphones, the internet and social media, while experiencing the pandemic, political uncertainty and the breakthrough of artificial intelligence as teenagers or young adults.

She says younger people’s technical skills are often stronger than those of older generations, and they are accustomed to using tools that are now needed in working life.

Window of opportunity is closing

Christie warns that the current situation could cause problems for companies in the coming years. Over the next decade, tens of thousands of people will leave working life to retire, while younger age groups are significantly smaller.

“Soon there will not be enough workers for everyone. There are currently highly skilled people available. If companies have the courage to recruit now, they can choose the best employees,” Christie says.

She has seen signs that the economy is improving and hopes the employment situation will get better during the autumn. Christie urges companies considering recruitment to make decisions soon, recommending that they hire at least one new employee, and two if possible.

Sarvela is continuing his job search. He says the most frustrating part is feeling that his life is not moving forward. Even when he finds work, it is often temporary, creating ongoing uncertainty.

He also says it is unusual that municipalities have to pay a penalty if they do not employ people, and believes the penalty payments should instead be used to promote employment.