Smart technologies are displacing young professionals from the job market, according to the report
Entry-level job openings for young professionals in US sectors influenced by AI have decreased by 13% in the last three years, as per a Stanford Digital Economy Lab report. Researchers cautioned that intelligent technologies are rapidly altering career prospects for new entrants to the workforce.
This statistic intensifies existing concerns that recent college graduates are struggling to secure employment in fields diminishing due to automation. The report, titled ‘Canaries in the Coal Mine? Six Facts about the Recent Employment Effects of Artificial Intelligence,’ warns that these initial findings may signify wider labor market disruptions as AI adoption quickens.
The study pinpoints software development, customer service, accounting, and administrative support as the sectors most significantly impacted.
The effect is particularly pronounced for workers aged 22 to 25, with employment in these positions decreasing by 6% since late 2022. Entry-level software developers have been most severely affected, experiencing a 20% reduction in job postings for their age bracket.
Conversely, more senior employees seem to be less impacted. Indeed, in the four most susceptible sectors, employment among older workers has risen by 6–9% since 2022.
Meanwhile, in sectors less susceptible to AI-powered automation, including logistics, maintenance, and other manual occupations, the count of entry-level roles for young workers has increased by 6–13%.
The report also underscores a decline in employment among young professionals in positions where AI primarily handles task automation, while an increase is seen in occupations where AI serves a more assistive function.
Researchers investigated if other economic variables could account for these changes, but determined that AI-powered automation is the main cause behind this pattern.
These changes were most evident in late 2022, concurrent with the swift emergence of generative AI instruments. The public launch of ChatGPT in November of that year represented a pivotal moment, according to the study, and is considered a significant catalyst for recent labor market shifts.
The report utilizes data from ADP, the foremost payroll software vendor in the US, which monitors millions of employees across tens of thousands of businesses.