Young jobseekers face challenges in a tough labor market. U.S. unemployment rate for 22- to 27-year-old degree holders is highest in a dozen years outside of the pandemic. Companies are hesitant to hire amid economic uncertainty, impacting professions like information technology. Concerns arise over AI replacing entry-level roles.

Citi Foundation focuses on youth employability with a $25 million Global Innovation Challenge. They will donate $500,000 to 50 groups worldwide providing digital literacy skills and career guidance for low-income youth. Ensuring readiness for a quickly evolving job market is the goal.

Employer feedback highlights the need for technical skills among early career applicants. Citi Foundation emphasizes the importance of vocational training and soft skills. World Economic Forum survey shows skills gaps as the biggest barrier to business transformation. Companies plan to hire AI-skilled individuals while eliminating some roles.

Grantees are teaching how to prompt AI chatbots and focusing on imparting qualities AI lacks like teamwork and communication. The emphasis is on developing soft skills alongside technical skills. NPower, a nonprofit, receives a grant to make digital careers more accessible to young adults in underinvested communities.

Tech industry demands wide-ranging capabilities including cloud computing, AI, project management, and emotional intelligence. Companies prioritize AI comfortability and general competency over specialized skillsets. The focus shifts from technical expertise to being customer-service oriented.

Per Scholas, a technology training nonprofit, receives funds to develop careers for young adults in various cities. Adapting to AI’s productivity gains, nonprofits provide hands-on training for jobs that now require less experience. Failing to create new career pathways may hinder the economy by blocking young people from high-growth careers.

Brookings Institution senior fellow highlights the need for a response to technology’s disruption of the labor market. The scale of the disruption requires more than philanthropy alone. Previous displacements due to automation left many behind, emphasizing the importance of addressing the current challenges effectively.

Read more at Yahoo Finance: Citi Foundation is putting $25M toward tackling young adults’ unemployment and AI labor disruptions