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Gen Z Workplace Readiness Gap Grows as Managers Question Young Workers’ Skills

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Many young workers believe they have the skills needed to succeed in the workplace, but a growing gap between their confidence and employers’ expectations is raising concerns about whether recent graduates are adequately prepared for working life.

A report from the Chartered Management Institute found that only 6% of managers believe young recruits are ready for the workplace. That compares with 45% of Gen Z workers who say they already have the skills required to succeed.

Ann Francke, chief executive of the CMI, said too many young people leave education with ambition and potential but discover they have not been prepared for workplace realities.

She said government, educators and employers all have a role in improving workplace readiness, particularly as businesses seek to tackle youth unemployment and improve productivity.

The issue has also been raised by business leaders. Glenn Fogel, chief executive of Booking Holdings, said in 2024 that younger employees could need additional training and guidance to understand workplace structures and expectations.

A 2024 survey by Hult International Business School of 800 HR leaders found that 37% would prefer to use a robot or AI rather than hire a recent graduate for certain roles, while 45% would choose a freelancer. Around 30% said they would rather leave a position vacant than employ a recent graduate.

Resilience emerged as one of the biggest concerns. About 91% of managers said younger workers lacked resilience, with the gap affecting performance. Communication was identified by 98% of HR leaders as an important skill, while 93% highlighted curiosity and willingness to learn.

Collaboration was identified by 92% as a key missing ability, followed by creativity at 90% and critical thinking at 87%.

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Only 12% of managers surveyed by the CMI said young people at their organisations were progressing as expected. Managers cited poor resilience, motivation, workplace behaviour and timekeeping among the reasons some employees struggle or fail probation.

Technology skills are another concern. About 97% of HR leaders said new employees should have a basic understanding of AI, IT and data analytics, but only 20% of recent graduates believed they possessed those skills.

The challenges facing Gen Z also extend beyond workplace preparation. Many entered the workforce after the pandemic into an environment marked by remote working, office return mandates, layoffs and economic uncertainty. Rising housing costs and concerns about retirement have also shaped attitudes toward employment.

Research from People’s Pension found that 12%, or around 2.2 million young adults in the UK, have stopped saving for retirement because they believe they may have to work throughout their lives.

Universities are also facing criticism. Around 90% of Hult’s surveyed HR leaders said colleges should offer career coaches or mentors, yet only 36% of students said they had received such support.

Martin Boehm, Hult’s global dean of undergraduate programmes, said traditional university courses had not kept pace with changing workplace demands.

He said education providers need to focus more on practical skills and continuous learning so graduates can adapt to a rapidly changing employment market.

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European Campaigners Demand Pause on Large Data Centre Projects Amid Growing Local Opposition

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More than 100 rights groups across 15 European countries are preparing protests against the rapid expansion of energy-intensive data centres, calling for an immediate halt to new large-scale projects until stronger rules are introduced.

The Stop Dirty Data Centres campaign has organised demonstrations and public events for Friday and Saturday, November 6 and 7, with activities planned in Ireland, Poland, Denmark, Finland, Spain, the Netherlands, France and the United Kingdom.

The groups say the expansion of data centres is putting increasing pressure on local communities, public infrastructure, land, water and energy supplies. They have also raised concerns about the potential effects on housing, employment and household costs.

“Today, communities across Europe who have been challenging the imposition of energy, water and land-hungry data centres where they live are arriving on the European political stage,” said Owen Espley, coordinator of StopDirtyDataCentres.eu.

The protests follow this week’s US midterm elections, where opposition to data centre developments and concerns about artificial intelligence infrastructure became prominent campaign issues. Campaigners in Europe say the American debate has highlighted growing public resistance to projects that can place additional demands on local resources.

Residents living near data centres have raised concerns about rising electricity bills and the amount of water required to operate and cool the facilities. Other complaints include air pollution from backup generators, construction traffic, the appearance of large industrial buildings and the constant noise generated by equipment operating around the clock.

Espley said campaign groups were joining forces to challenge the influence of major technology companies and the support they receive from some political decision-makers.

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“They are calling on political leaders to implement moratoria on large-scale data centres at European, national and local levels so their concerns can be addressed and the impacts of data centres properly scrutinised,” he said.

Demands grow as European investment accelerates

Environmental organisations, digital rights campaigners and other civil society groups are taking part in the coordinated action. Planned activities include demonstrations, public meetings, petition drives, information stalls, walking tours, cycle rides and poetry readings.

The campaign comes as European governments and technology companies accelerate investment in data centre infrastructure to strengthen the region’s position in artificial intelligence and compete with the United States and China.

According to the PwC Global Data Centre Outlook 2026-2050, annual investment in European data centre projects has increased from €12 billion in 2020 to an estimated €25 billion to €26 billion this year.

Total spending is expected to reach €176 billion between 2026 and 2031, reflecting the scale of planned development.

Campaigners argue that the pace of construction is outstripping the development of rules governing energy and water consumption, environmental effects and community consultation. They want governments to pause major projects while these issues are examined.

The demonstrations are intended to bring local opposition into the wider European policy debate and press authorities to establish clearer safeguards before approving further large-scale developments.

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US Midterm Results Put Data Centre Expansion Under Pressure as Democrats Win Key States

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Democratic victories in several major US technology hubs have raised fresh questions about the expansion of artificial intelligence data centres, after candidates who promised tougher restrictions on new projects won key races in Tuesday’s midterm elections.

Texas, Georgia and Ohio, which have attracted major technology companies seeking to build facilities to power AI systems, elected Democratic candidates who have pledged to strengthen oversight of the industry.

The results highlight growing public opposition to data centres, which require large amounts of electricity and land and can generate noise and pollution. According to research project Data Center Watch, at least 45 data centre developments were disrupted by local opposition during the second half of 2026.

A 2025 Pew Research Center survey found that more than half of Americans were more concerned than excited about artificial intelligence. An NBC exit poll also indicated that more than 50% of voters considered AI and data centres a major or crucial factor in their decision at the midterm elections.

US President Donald Trump has supported the rapid expansion of data centre infrastructure. In September, he dismissed criticism of the facilities and concerns about AI safety, describing opposition as a hoax and arguing that data centres generate wealth for companies and states.

Texas has attracted major technology groups, including OpenAI, Anthropic, Oracle, Microsoft, Google, Meta and Amazon, through tax incentives and offers of land and energy supplies.

Republican Governor Greg Abbott had previously sought to establish Texas as a leading AI centre. However, he later paused permits for new data centre projects while an audit was carried out. The decision followed pressure from Democratic candidate Gina Hinojosa, who had promised a temporary halt to construction until stronger legal safeguards were introduced.

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The election results also prompted a reaction from billionaire Elon Musk, a major Republican donor who contributed $474 million to Republican efforts during the midterm campaign. Musk, whose xAI company operates the Colossus supercomputer facility in Memphis, wrote on X: “data centres in space looking pretty appealing right now.”

Ohio recorded particularly strong resistance to new developments, with voters in 15 municipalities approving bans or other restrictions on data centre projects.

The state has been a target for major technology investment. Meta has planned to spend $1 billion on a data centre in Ohio, while Amazon Web Services has announced plans for a $2 billion investment.

The debate over data centre construction has intensified as technology companies race to expand computing capacity for artificial intelligence. While developers argue that the facilities support economic growth and technological development, opponents have raised concerns about electricity consumption, environmental effects, local infrastructure and the impact on residential communities.

The Democratic victories could increase pressure on state authorities and technology companies to address those concerns as they seek approval for further projects.

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Anthropic Revenue Jumps to $17 Billion as AI Spending Drives Up Costs Ahead of Nasdaq IPO

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Anthropic reported a 47 per cent increase in third-quarter revenue to $17 billion (€15.1 billion), but returned to an operating loss as spending on computing capacity and long-term infrastructure commitments mounted ahead of its planned Nasdaq listing.

The US company behind the Claude artificial intelligence models recorded revenue 12 times higher than a year earlier, according to an updated prospectus filed with US regulators on Monday. However, it reported an operating loss of $567 million (€506 million), compared with a profit of $974 million (€870 million) in the previous quarter.

Anthropic attributed part of the reversal to $5 billion (€4.46 billion) spent on short-term computing capacity after demand exceeded the company’s existing long-term arrangements. The filing said this capacity currently costs significantly more.

The company also recorded a $2 billion (€1.78 billion) non-cash charge linked to a programme matching employee donations. Adjusted operating income reached $2.5 billion (€2.23 billion), representing a 15 per cent margin, down from 19 per cent in the second quarter.

Anthropic’s net loss widened to $23.3 billion (€20.8 billion), compared with $12.1 billion (€10.8 billion) a year earlier. During the first nine months of the year, it recorded losses of $104 billion (€92.9 billion) against revenue of $33.2 billion (€29.6 billion). The company said $94.3 billion (€84.2 billion) of the losses resulted from non-cash accounting charges as the value of convertible notes increased.

The prospectus also disclosed approximately $895.4 billion (€800 billion) in purchase and lease commitments, largely related to computing infrastructure. The commitments are almost seven times the $131.8 billion (€117 billion) Anthropic held in cash and short-term investments at the end of September.

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Around $70 billion (€62.5 billion) is due within 12 months, while approximately $450 billion (€402 billion) falls due by the end of 2030. A further $214 billion (€191 billion) is cancellable or subject to conditions.

The company warned that customers breaching its usage rules or commercial terms accounted for between 5 and 7 per cent of revenue during the first nine months. It said enforcement measures could reduce revenue and future growth.

Anthropic also disclosed potential risks from rapid advances in artificial intelligence, saying it might soon reach its own threshold for dramatically accelerated progress in which AI systems help develop more capable models. The company warned that such developments could pose significant safety concerns, although it has not classified any existing model as having reached that threshold.

The updated filing comes as Anthropic prepares to list on Nasdaq under the ticker ANT. It has not yet announced a share price range, but securities rules require publication of a prospectus at least 15 days before a company begins its investor roadshow.

Anthropic could therefore begin marketing its shares as early as next week, with a listing possible from the week of November 16.

Investor expectations for the company’s valuation have reportedly eased to around $1.5 trillion (€1.33 trillion), down from earlier estimates of approximately $2 trillion (€1.78 trillion), following a technology stock sell-off linked to concerns about AI investment costs. The revised figure would still exceed the $965 billion valuation set during its private funding round in May.

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