Choosing a career used to come down to one question: which degree pays best? That’s not enough anymore. Artificial intelligence is reshaping the world of work fast. Some jobs are transforming, some skills are becoming outdated, and others are suddenly in high demand. Marsh’s People Risk 2026 report, based on a survey of more than 4,500 HR and risk professionals, gives one of the clearest pictures of this shift. Here’s what young people should keep in mind when planning their careers.
Quick Look
- Labor shortages are the second most-cited risk worldwide
- Weak cyber threat literacy tops the entire risk list
- 63% of employees would trade a pay raise for better AI training
- 40% of employees worry about losing their job to AI
1AI isn’t destroying jobs, it’s reshaping them
Most companies are pouring money into AI but still aren’t seeing the returns they expected. The problem usually isn’t the technology itself. It’s that work is still being done the same old way. Companies try to bolt AI onto existing processes, when what actually makes a difference is redesigning the work from scratch: deciding which tasks stay human and which get handed off to AI.
That’s a useful signal for young people. The people who stand out in the future will be the ones who treat AI as a partner rather than a competitor, and who can rethink how work gets done. Technical knowledge alone isn’t enough. Being able to break down a job and figure out the right split between human and machine is the skill that actually sets people apart.
2The skills triangle employers want: IQ, EQ, DQ
The research compares what executives and employees each value in a leader, and it maps out a three-part skills framework:
IQ, Cognitive Skills
Risk awareness, strategic planning, accountability, critical thinking, financial acumen
EQ, Emotional Skills
Communication, empathy, integrity
DQ, Digital Skills
Data-informed decision making, data literacy, comfort with AI
Executives tend to prioritize risk awareness, strategic planning, and accountability, while employees care more about communication, empathy, and honesty. That means the people who stand out in the future will be the ones who combine both technical and human skills. Being able to code isn’t enough on its own, and neither is being a great communicator. It’s the combination that matters.
Alongside this, a large share of employees are burned out. A quarter say they’re unhappy at work but don’t see leaving as an option, and one in eight plan to quit within the next six months.
3Where are labor shortages growing the most?
Labor shortages rank as the second most significant risk worldwide. Broken down by industry, this shortage is the number one priority in particular in:
💼
Professional Services
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Manufacturing and Auto
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Construction and Real Estate
This shows up even more clearly in countries with aging populations. In societies where the population is aging fastest, labor shortages sit right at the top of the list. For young people, that means the supply-demand balance could actually work in their favor if they choose the right sector and build the right skills.
4The most in-demand technical skill: cybersecurity and tech
Weak cyber threat literacy tops the entire list of risks in the research. Specialized tech skills shortages rank third. More than 70% of organizations say they experienced at least one serious cyber incident in the past year. Phishing and AI-powered fake content remain the most common entry points for attacks.
The takeaway is clear: young people who specialize in cybersecurity, data science, or AI engineering will have a strong edge in the years ahead.
5Reskilling isn’t optional anymore, it’s expected
63%
of employees would rather have better AI training than a pay raise
According to Mercer’s Global Talent Trends 2026 research, 63% of employees would give up a 10% pay raise in exchange for better digital and AI reskilling opportunities. That says a lot about how much people value growth, sometimes even more than pay.
Even so, most organizations are still slow to respond. When a skills gap shows up, they tend to hire externally rather than train from within. That’s both an opportunity and a warning for young people entering the workforce: keeping your own skills current matters far more than waiting for an employer to hand you the training.
6AI anxiety: the new reality for young workers
40% of employees say they’re worried about losing their job to AI, and that number is climbing fast. There’s an interesting contradiction too: 67% of people interact with AI in human-like ways, and one in five say AI chatbots help them cope with anxiety and stress.
That anxiety is understandable, but it’s not a reason to panic. The people who come out ahead won’t be the ones competing with AI, they’ll be the ones working alongside it. The goal is to build up what AI can’t do: judgment, creativity, empathy, and complex decision-making.
7Leadership is earned through skill now, not seniority
More than 76% of executives believe today’s leaders need to hold seemingly opposite skills at the same time: empowering yet directive, strategic yet hands-on, independent yet collaborative. As AI reshapes mid-level and entry-level roles, organizations are becoming flatter. That means leadership is increasingly earned through demonstrated skill, not through years spent climbing a ladder.
For young professionals, that means investing in communication, decision-making, and people skills from day one is just as important as technical expertise.
In short: 5 takeaways for young people
Invest in skills that blend AI and human judgment, not just technical know-how. Being able to redesign work around AI matters as much as knowing how to use it.
Cybersecurity and data skills are among the most in-demand right now. Specializing here gives you a real career edge.
Put continuous learning at the center of your career plan. Reskilling isn’t optional anymore, it’s the standard expectation.
Communication, empathy, and integrity never go out of style. If anything, they become more valuable as technology advances.
Picking the right sector makes a real difference. Labor shortages in professional services, manufacturing, and construction can open a window of opportunity for new graduates.
This article was compiled from Marsh’s global report, People Risk 2026: The Human Edge.
