{"id":456437,"date":"2026-02-05T23:26:11","date_gmt":"2026-02-05T23:26:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/456437\/"},"modified":"2026-02-05T23:26:11","modified_gmt":"2026-02-05T23:26:11","slug":"ai-may-be-killing-entry-level-jobs-bank-of-canada-governor-warns-national","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/456437\/","title":{"rendered":"AI may be killing entry-level jobs, Bank of Canada governor warns – National"},"content":{"rendered":"

The advent of Artificial Intelligence<\/a> (AI) may be reducing the number of entry-level jobs available to young people in Canada, Bank of Canada<\/a> governor Tiff Macklem said Thursday.<\/p>\n

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In a talk titled \u2018Structural change \u2014 Canada at a crossroads,\u2019 Macklem addressed three structural changes that the Canadian economy will have to contend with in the near-future: the changing trade relationship with the United States, slowing population growth and the rise of AI.<\/p>\n

\u201cThe impact of these forces on the Canadian economy will not be a temporary cyclical fluctuation,\u201d Macklem said in Toronto.<\/p>\n

AI was a \u201ctransformative technology,\u201d Macklem said, adding that it has \u201cthe potential to put the economy on a higher path and raise our standard of living.\u201d<\/p>\n

However, he said economic observers had expressed concern about \u201cover-investment and over-valuation as well as fears of job destruction.\u201d<\/p>\n

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He said while in some cases, there may be increased demand for workers with AI skills, the \u201cflip side is we may be seeing some early evidence that AI is reducing the number of entry-level jobs in some occupations.\u201d<\/p>\n

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\u201cThis may be boosting youth unemployment, although separating the effects of AI from the impact of trade and demographic changes is difficult,\u201d he said.<\/p>\n

There may be some \u201chard evidence\u201d that it is getting more difficult to find an entry-level job in a field where the bulk of the work can be performed using AI, he said.<\/p>\n

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He said Canada is also responding to another major challenge \u2014 an increasingly protectionist United States.<\/p>\n

\u201cAs we approach the one-year mark of U.S. tariff threats, supply chains have started to shift. Goods imports from the United States have declined, while those from other countries have increased,\u201d he said.<\/p>\n

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However, he added that the pivot has largely been focused on existing clients as Canadian businesses \u201chave not found many new clients just yet\u201d outside of the U.S.<\/p>\n

Lower population growth, reflected in lower fertility rates as well as slashed immigration levels, have also pulled down Canada\u2019s GDP growth forecast, he said.<\/p>\n

\u201cThat means fewer new consumers and workers in the economy, which lowers our economic potential,\u201d Macklem said, adding that the Bank forecasts Canada\u2019s labour force \u201cwill hardly grow at all over the next few years.\u201d<\/p>\n

Over the next two years, Macklem said he expects the Canadian GDP to grow by 1.25 per cent with modestly growing household spending and business investment. However, he expects businesses to be \u201ccautious in their hiring this year.\u201d<\/p>\n

\u201cSome things are clear. The United States has rejected open trade, population growth has slowed, and AI will change the marketplace. And when the economic landscape changes, Canadian businesses need to adjust,\u201d Macklem said.<\/p>\n

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\n\t\t&copy 2026 Global News, a division of Corus Entertainment Inc.\t<\/p>\n","protected":false},"excerpt":{"rendered":"The advent of Artificial Intelligence (AI) may be reducing the number of entry-level jobs available to young people…\n","protected":false},"author":2,"featured_media":456438,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[62,276,277,52,49,48,46,61],"class_list":["post-456437","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-bank-of-canada","tag-ca","tag-canada","tag-economy","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/456437","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=456437"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/456437\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/456438"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=456437"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=456437"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=456437"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}