New report shows impact of AI on entry-level jobs
Employment for young workers in the United States has declined for some roles amid the widespread implementation of artificial intelligence, according to a new study from Stanford University.
The report, which looked at data from human resources management and payroll software provider ADP, found a 13% relative employment decline for workers between the ages of 22 and 25 years old who are in the most AI-exposed occupations.
In particular, it noted that employment for young software developers declined by nearly 20% by July 2025. It also noted similar drops for computer occupations and service clerks more generally.
On the other hand, the study pointed out that positions related to health aides, such as nursing, have observed a different trend from AI-exposed roles.
"Employment for young workers [in these roles] has been growing faster than for older workers," the study stated.
Impact on entry-level jobs
The findings come amid reports that entry-level employment, where young workers usually start, could be wiped out by the implementation of AI tools.
In fact, 47% of Gen Z and Millennial employees are already worried that AI could replace their jobs, to the point that they are too nervous to admit how much of their work is accomplished by AI.
Stanford's study confirms that the implementation of AI tools has an influence on entry-level jobs, but the impact is not across the board.
"Entry-level employment has declined in applications of AI that automate work, with muted changes for augmentation," the report read.
According to its findings, occupations with the highest estimated automation shares have experienced declining employment for the youngest workers.
However, occupations with the highest estimated augmentation shares did not report a similar pattern.
"The findings are consistent with automative uses of AI substituting for labour while augmentative uses do not," it read.
