Is AI really coming to take your job? Or are there more nuanced discussions that should be happening right now?
Artificial intelligence has taken a lot of heat lately.
It’s destroying the planet, consuming all of the drinkable water on the planet, and compromising human jobs. College grads are booing the mention of AI, which is reducing the number of available entry-level opportunities for them.
But is AI a red herring for a bigger problem in technology? Turns out, there aren’t enough people to fill all the roles available.
Matt Walsh, chief executive officer of Blue Signal, a recruiting firm that hires in semiconductor production among other fields, told the Hechinger Report, “The unemployment rate is probably negative 20%. It’s ridiculous. There just aren’t enough people.”
It’s hardly surprising. Plant Engineering has been covering the skilled labor gap for quite some time now. Back in April 2025, I reported that Gen Z workers simply aren’t interested in manufacturing as a career.
What’s causing this labor gap?
AI is an easy scapegoat. And it’s not entirely unwarranted. AI is replacing some workers. It’s even making life much harder for people who work in the arts and other fields. But it’s not the only reason the United States is facing a skilled labor shortage.
Georgetown University’s Center on Education and the Workforce points to myriad reasons the country is facing a crisis that could hobble the economy for years to come.
Georgetown’s researchers found that:
- Fewer young Americans are attaining postsecondary credentials to replace educated retirees
- The growing educational demand from employers outstrips the educational attainment of workers
- Uneven improvements in grades K-12 graduation rates are leading to a decline in academic preparation for college
- There’s a decline in college enrollment, as well as a low degree completion rate for the fastest-growing populations
- There’s a declining labor-force participation rate among workers at all education levels
- The decline in immigration and the likelihood of further restrictions is limiting the availability of foreign-born workers
- There is uncertainty over whether generative AI will ease or worsen this skill shortage
The workers AI can’t replace
There’s no doubt AI is making a huge impact –– for better or worse –– on the world.
But the biggest labor gap exists in fields where AI can’t replace skilled humans. These sectors include health care, education, engineering, and construction.
It’s estimated that 18 million college educated workers will leave the labor force between 2024 and 2032. Fewer than 14 million people will enter the workforce to replace those retirees. This leaves a gap of 4.6 million workers, but that number could be as high as 6 million, according to Lightcast.
What’s the solution?
This all sounds really dire!
Birth rates in the United States are declining, and the population is not educated enough to replace the educated workers retiring.
Automation has long been touted as a way to fill the gap. But is it the only solution? What do you think? How can the U.S. bridge its labor gap?
This article originally appeared in Factory Reset, the official LinkedIn newsletter of Plant Engineering.
