A report from the Stanford Digital Economy Lab has raised alarm about the growing threat of AI automation to young professionals in the United States. According to the findings, job opportunities for entry-level workers in AI-affected sectors have dropped by 13% over the past three years, with the most significant impact on those aged 22 to 25. The report, titled ‘Canaries in the Coal Mine? Six Facts about the Recent Employment Effects of Artificial Intelligence,’ warns that these early signs may indicate broader labor market disruptions as AI adoption accelerates.
The study identifies software development, customer service, accounting, and administrative support as the most affected industries. Entry-level software developers, in particular, have faced a 20% drop in job postings for their age group since late 2022. Meanwhile, more senior employees are less affected, with employment in the four most vulnerable industries increasing by 6–9% since 2022. On the other hand, sectors less exposed to AI-driven automation, such as logistics, maintenance, and other hands-on fields, have seen a growth in entry-level positions for young workers, with increases ranging from 6–13%.
Researchers concluded that AI-driven automation is the primary culprit driving these shifts, with changes becoming most noticeable in late 2022, coinciding with the rapid rise of generative AI tools. The public launch of ChatGPT in November 2022 is seen as a major driver of recent adjustments in the labor market. The report draws upon data from ADP, the largest payroll software provider in the US, which tracks millions of workers across tens of thousands of firms.
The report also highlights that employment is declining among young professionals in roles where AI primarily automates tasks, while growth is occurring in occupations where it plays a more supportive role. The study examined whether other economic factors might explain these shifts but ultimately concluded that AI-driven automation is the main cause of the trend. The findings add to growing concerns that recent college graduates are struggling to find work in fields which are shrinking due to automation.