The emergence of artificial intelligence (AI) technologies, particularly generative AI, has significantly impacted the job market, primarily focusing on entry-level positions. A recent study conducted by Stanford economists Erik Brynjolfsson, Bharat Chandar, and Ruyu Chen reveals that younger workers have particularly borne the brunt of this technological wave, with employment for early-career employees dropping by 13% since 2022.
The AI Job Market Disruption
The study, which utilized data from ADP—a payroll processing provider serving around 25 million workers—illuminates the stark contrast between the employment trends of younger and older workers. It highlights two sectors—software engineering and customer service—where entry-level jobs have seen a remarkable decline of approximately 20% between late 2022 and mid-2025. In contrast, older employees within the same job categories experienced an increase in employment during this period.
Overall, the employment decline for youth aged 22 to 25 in AI-exposed fields averaged around 6%. On the other hand, older workers in the same sectors saw employment rise between 6% and 9%. The researchers suggest that older employees, having done their time in the workplace, have cultivated critical communication and other soft skills that are not easily replicable by AI. As Brynjolfsson aptly pointed out, "Older workers have a lot of tacit knowledge… knowledge that’s not in the LLMs," making them less susceptible to job displacement by AI.
Fields in Focus
The report indicates that several professions are notably affected by the pervading influence of AI. Among these are:
- Accounting and Auditing: The automation of routine number-crunching tasks makes entry-level roles increasingly vulnerable.
- Secretarial and Administrative Work: AI tools can easily take over scheduling, data entry, and basic communication tasks.
- Computer Programming: Coding tasks, especially those that can be standardized, are at risk as AI becomes adept at generating code.
While these sectors face significant exposure to job losses due to AI, it is important to also acknowledge fields like nursing, where AI is more likely to augment rather than replace positions. Here, the technology could automate mundane tasks, allowing healthcare professionals to focus more on patient care.
The Transition: Jobs Lost vs. Jobs Created
Though the study outlines a troubling trend for younger workers, it also emphasizes the historical context of technological disruption. Brynjolfsson articulates that tech has traditionally eliminated some jobs while simultaneously creating new opportunities. "There is always this turnover," he noted, indicating that the landscape will continue to evolve.
As evidence suggests, while some roles may vanish, new roles that leverage AI are emerging. For instance, a recent report from AI staffing firm Burtch Works indicates that starting salaries for entry-level AI positions rose by 12% from 2024 to 2025, highlighting the demand for skills that intersect with technology.
Strategies for Young Workers
For young workers, the key to thriving in the current job market is to learn how to effectively harness AI tools. Brynjolfsson stresses that “young workers who learn how to use AI effectively can be much more productive.” Those who become adept at using AI to enhance their work will position themselves as invaluable assets, while those who only perform tasks that AI can accomplish may find themselves at a disadvantage.
This message is particularly crucial for graduates entering the workforce. Familiarity with AI and the ability to integrate it into their existing skill set will empower them to navigate an increasingly competitive job landscape.
Conclusion: The Call for Adaptability
The findings from the Stanford study underscore an urgent call for adaptability among young workers. As AI continues to permeate various sectors, the need for skills that supplement rather than compete against this technology will become increasingly pronounced. Educators, employers, and policymakers alike must pay close attention to these trends to facilitate a smoother transition for the workforce.
In conclusion, while the swift move toward AI-driven job functions may seem daunting, it also presents an opportunity for growth and development. Those willing to embrace change and invest in learning will find themselves well-prepared for a future where human-AI collaboration is not just beneficial but essential.
