What's Happening?
Citi Foundation has announced a $25 million Global Innovation Challenge aimed at enhancing youth employability, particularly for Gen Z, in response to the evolving job market influenced by artificial intelligence
(AI). The initiative will distribute $500,000 to each of 50 nonprofit organizations worldwide that focus on providing digital literacy, technical training, and career guidance to low-income youth. Ed Skyler, Citi's Head of Enterprise Services and Public Affairs, emphasized the importance of preparing young people for a rapidly changing employment landscape. The initiative responds to employer feedback indicating a lack of necessary technical skills among early career applicants, highlighting the need for vocational training and soft skills development. The World Economic Forum's survey of over 1,000 companies identified skills gaps as a major barrier to business transformation, with many companies planning to hire individuals with AI skills while potentially eliminating jobs that AI can perform.
Why It's Important?
This initiative is significant as it addresses the growing concern over youth unemployment and the impact of AI on entry-level jobs. The U.S. unemployment rate for young degree holders is at its highest in over a decade, excluding the pandemic period. By investing in skills development, Citi Foundation aims to bridge the gap between education and employment, ensuring that young people are equipped to meet the demands of modern workplaces. The focus on both technical and soft skills is crucial, as it prepares the workforce for roles that require human qualities such as empathy and communication, which AI cannot replicate. This effort could potentially mitigate the economic impact of job displacement due to automation and support the integration of young workers into high-growth careers.
What's Next?
The funding will enable organizations like NPower and Per Scholas to expand their programs, offering more opportunities for young adults to gain relevant skills. NPower plans to double the spaces in its program for students with no tech background, while Per Scholas will develop careers for about 600 young adults across major U.S. cities. As these programs roll out, they may serve as models for addressing the broader challenges of workforce development in the age of AI. The success of these initiatives could influence future philanthropic efforts and public policy aimed at supporting youth employment and adapting to technological advancements.
Beyond the Headlines
The initiative highlights the ethical and societal implications of technological disruption in the labor market. As AI continues to transform industries, there is a pressing need to ensure that the workforce is not left behind. The focus on developing soft skills alongside technical abilities underscores the importance of human-centric qualities in the workplace. This approach not only prepares individuals for current job demands but also fosters a more adaptable and resilient workforce capable of navigating future changes. The collaboration between philanthropy and workforce development organizations may also inspire similar partnerships to address other societal challenges.
