May 30, 2025: In 1986, inventor David Humble introduced the first self-checkout machine at a Kroger store near Atlanta. This innovation promised to “increase store profits” and “alleviate labor shortages” — a thinly veiled strategy to reduce hiring workers above the national minimum wage, which was $3.35 per hour then (compared to $7.25 today).
The Expansion of Self-Checkout Technology
Fast forward nearly four decades, and self-checkout systems have become ubiquitous worldwide. Over 217,000 self-checkout terminals are now installed globally. However, labor experts estimate these machines eliminate 35 to 40 percent of entry-level retail jobs within a year of implementation at a given store.
The Downside of Self-Checkout: Outages, Surveillance, and Frustration
Despite their widespread adoption, self-checkout machines frequently face technical outages, cause frustration with unexpected items in bagging areas, and raise concerns over customer surveillance. This raises the question: who truly benefits from this technology — retailers, workers, or consumers?
Gen Z Faces the Future: AI Disrupting Entry-Level Employment
This dilemma is especially pressing for Generation Z, who are entering or trying to enter the workforce amid an explosion of artificial intelligence (AI) technologies. A recent Oxford Economics Group report highlights a rising unemployment rate among recent US college graduates, largely due to entry-level jobs being displaced by AI.
The report shows that among 22 to 27-year-olds, employment in STEM fields such as computer science has declined by 8 percent since 2022, marking a significant shift in the labor market. For the first time, unemployment rates for recent and experienced graduates are surpassing the national average.
Conclusion: Navigating a New Labor Landscape
As self-checkout machines and AI continue to reshape retail and STEM industries, young workers face unprecedented challenges. Understanding the impact of these technologies is crucial for adapting to a rapidly changing job market.