Manufacturing’s New Problem: Entry-Level Jobs for Gen Z Workers are Going Away

Remember when a weekend shift or entry-level gig got you into manufacturing? That ladder’s breaking. AI isn’t just nibbling at white-collar internships—it’s devouring the grunt-work jobs many plants rely on. As someone who’s seen hiring seasons come and go, I’m calling it: employers and Gen Z need a new playbook.

AI is automating routine roles—from first-year clerks to warehouse packers—creating fewer chances to gain experience. As the NY Post warns, “traditional entry-level jobs … are either disappearing or transforming beyond recognition.” Even Fortune recently described it as a breaking point: AI is “breaking” entry-level jobs that Gen Z workers need to launch careers. That means fewer openings for those stepping in at the ground floor—even in manufacturing, where entry gigs once ruled.

Factories and assembly lines historically fed young workers with real-world learning. But automated warehouses, cobots, and forklifts driven by AI are pushing humans out. Websites like Indeed already show thousands of listings for AI-driven roles—shift supervisors to robotics project managers—but few frontline operator positions. It’s a structural shift. We’re not just losing jobs; we’re losing the training paths that prepared people to climb to technical or management roles.

Skimping on early-career jobs means fewer future engineers or supervisors—and Michigan feels this. A Washington Post forum on U.S. manufacturing urged investment in retraining and high-skill immigration. But retraining only matters if there’s a workforce pipeline to build on.

Sure, Gen Z is digitally fluent—76% have used AI tools and more than half use them weekly. That puts them ahead. But AI alone won’t teach leadership, critical thinking, or shop-floor smarts. Experts suggest the future lies in hybrid models: apprenticeship programs that pair humans with AI, creating “AI-assisted apprenticeships and hybrid human-AI teams.” Good plan—but who’s stepping up to fund them?

 

Digital infographic of a career ladder with a missing entry-level step, symbolizing job disruption in the manufacturing industry

Manufacturing employers need to rethink their approach now. Resist the urge to eliminate all entry-level jobs. Instead, redesign them. Create roles that teach both AI tools and mechanical basics. Upskill your workforce by investing in online courses or community-college partnerships. Offer “AI + mechanical” training tracks—think automation technicians or digital-twin operators. And build actual ladder paths. Entry-level positions should map to technical and supervisory roles, not dead ends. Michigan and other regions invested in reshoring should consider this strategic.

Lastly, partner with schools. Encourage vocational programs to include AI in automotive, food-processing, and logistics training. These kids already know how to use the tools. Let’s give them a reason to stay in the industry.

AI isn’t the enemy—it’s the spark. But if we don’t rebuild training ladders, we risk a two-tiered workforce: a few AI-literate engineers and a lost middle class. For manufacturers, the challenge and opportunity lie in redefining entry-level roles, investing in hybrid apprenticeships, and planting seeds for future leadership. Let’s not let tech break the ladder before we’ve built the next one.

Free Money Alert: $16M in State Grants Up for Grabs for Michigan Manufacturers

Going PRO Talent Fund: $16 Million to Power Michigan’s Manufacturing Comeback

Remember when “training” meant a two-minute safety video and someone’s cousin giving you a crash course on the forklift? Those days are as extinct as flip phones—thanks to Michigan’s Going PRO Talent Fund. In Fiscal Year 2025 Cycle 2, Governor Whitmer and the Michigan Department of Labor and Economic Opportunity (LEO) just dropped $16 million into the pockets of 297 businesses statewide to level up nearly 8,000 employees through real, industry-recognized training programs.

Why Manufacturing Leaders Should Care

If you’re running a large-scale manufacturing operation, you know your biggest asset isn’t your shiny robots or CNC machines—it’s your people. And right now, there’s never been a better time to tap into state grants that make training almost free. Here’s the skinny:

Scale and Diversity: Of those 297 businesses, 86% are small-to-mid-sized, proving that both Main Street fabricators and big OEM suppliers can play. And training spans a range of sectors—advanced manufacturing, food production, clean energy, even healthcare equipment.

Immediate ROI: Businesses will upskill 4,691 current employees and onboard 3,227 new hires (including 1,788 apprentices!). Workers typically pocket a 7.2% bump in their hourly wage post-training—so happier, more skilled staff and a healthier bottom line, anyone?

Apprenticeship Power: Michigan ranks 4th nationally for active registered apprenticeships, with over 22,000 participants across 850 programs. That’s a ready pipeline of talent who know your tools, processes, and—critically—your culture.

More Than Just Free Money
What separates a flash-in-the-pan grant from a real workforce strategy? Customization and sustainability. Going PRO grants are designed in partnership with local Michigan Works! agencies, so training isn’t a one-size-fits-all slide deck. It’s tailored classroom instruction, on-the-job coaching, or credentials that matter in your shop.

We connect employers to funding that ensures Detroiters can walk the path to success,” says Dana Williams of Detroit Employment Solutions Corporation. The payoff? Reduced turnover, higher productivity, and a reputation as an employer that invests in people—critical when every plant manager is competing for the same handful of welders and machinists.

Big Picture: Building Michigan’s Middle Class
Since 2014, Going PRO has trained 225,000 workers and supported 7,400 businesses. But these aren’t just stats—they’re real people getting promoted from grunt work to skilled technician, from unsteady temps to registered apprentices with credentials that travel across industries. Governor Whitmer’s FY 2026 budget even recommends $54.8 million more, signaling that Lansing sees talent pipelines as essential infrastructure. The Michigan Going PRO Talent Fund opened up submissions in March and will remain open until funds are exhausted. Click here to learn more and apply for your business!

Workers clustered around a CNC machine as an instructor demonstrates controls on a tablet.

Action Steps for Manufacturing Execs

Audit Your Skills Gaps
Partner with your local Michigan Works! Service Center. Identify your biggest choke points—robotics programming? PLC troubleshooting? CNC maintenance?

Map Out Training Paths
Choose programs that align with your growth plans: short-term certificates for quick wins, apprenticeships for deeper skill sets.

Leverage the Grant
Apply for Cycle 3 (watch Michigan.gov/TalentFund for deadlines) and secure up to 75% of training costs covered.

Showcase Success
Promote your investment in people—both internally and externally. It’s a recruiting magnet and a PR win.

At the end of the day, free money is great—unless it just sits in an email inbox. By proactively designing training that matches your production needs, you’ll turn that $16 million into a ramped-up workforce, lower turnover, and a stronger Michigan manufacturing ecosystem.