The Citi Foundation is investing $25 million in programs designed to address youth unemployment and the shifting labor market driven by artificial intelligence. This initiative, called the Global Innovation Challenge, recognizes the difficulties young job seekers face in a rapidly changing environment.
The U.S. unemployment rate for degree holders aged 22 to 27 is currently the highest it has been in a dozen years, excluding the pandemic period. Economic uncertainty has made companies hesitant to hire, with the information technology sector experiencing a particularly significant hiring slump. The prospect of AI replacing entry-level positions further exacerbates these challenges.
The Citi Foundation's $25 million will be distributed as $500,000 grants to each of 50 organizations worldwide. These organizations will focus on providing low-income youth with digital literacy skills, technical training, and career guidance.
Ed Skyler, Citi's Head of Enterprise Services and Public Affairs, emphasized the importance of preparing young people for a rapidly evolving job market. He noted that employers have indicated that many early-career applicants lack the technical skills required for available roles, highlighting the need for ongoing vocational training and the development of soft skills.
A recent World Economic Forum survey of over 1,000 companies revealed that skills gaps are considered the biggest barrier to business transformation over the next five years. Two-thirds of the companies surveyed plan to hire people with specific AI skills, while 40% anticipate eliminating jobs that AI could perform.
Some of Citi's grantees are teaching young people how to use AI chatbots to automate work. However, Skyler stressed the importance of developing qualities that AI cannot replicate, such as teamwork, empathy, judgment, and communication. He stated that the goal is not for every young person to code or interface with AI, but rather to develop consistent soft skills across all programs.
NPower, a national non-profit focused on expanding economic opportunities in underserved communities by facilitating access to digital careers, is among the grant recipients. Robert Vaughn, Chief Innovation Officer of NPower, said that Citi's grant will at least double the spaces available in a program for "green students" with no tech background and often no college degree. He added that applicants need to demonstrate wide-ranging capabilities in cloud computing, AI, project management, and emotional intelligence, considering the tech industry's ever-changing requirements for skills and certifications.
Other organizations receiving grants include Changing Young Lives Foundation, which is upskilling low-income youth in Hong Kong, and Education For Employment, which is providing AI-enabled job matching support and upskilling youth across Algeria, Morocco, Tunisia, Saudi Arabia and the UAE. Girl Effect is advancing job opportunities for unemployed youth in Kenya, with a focus on girls and young women. NyföretagarCentrum Sweden is also a recipient and will use the grant to pilot and scale up the “Young & Your Own” program with the goal of creating 1,200 new jobs for young people in Sweden within two years.
Citi Foundation’s focus on youth employability is particularly important because AI's productivity gains have forced companies to rethink entry-level roles. Workforce development nonprofits are now providing more hands-on training to secure jobs that previously required more experience.
