Stanford University declares scary AI job caution

(MENAFN) A new report from Stanford University's Digital Economy Lab has revealed a sharp decline in job opportunities for young professionals in sectors heavily impacted by AI. Over the past three years, entry-level positions in these industries have dropped by 13%, signaling early warning signs of broader labor market disruption as artificial intelligence becomes more widespread.

Titled "Canaries in the Coal Mine? Six Facts about the Recent Employment Effects of Artificial Intelligence," the study points to significant challenges for recent college graduates, especially in areas such as software development, customer service, accounting, and administrative support.

Workers aged 22 to 25 have been particularly affected, experiencing a 6% decline in employment since late 2022. Among entry-level software developers, job postings have plummeted by 20% for this age group. In contrast, more experienced employees in these same sectors have actually seen job growth of 6–9% over the same period.

The report notes a contrasting trend in industries less susceptible to AI, such as logistics and maintenance, where entry-level job opportunities for young workers have increased by 6–13%.

Researchers also found that roles where AI tends to fully automate tasks are seeing a drop in young worker employment, while jobs where AI serves more as a support tool are experiencing growth.

After considering other possible explanations, the researchers concluded that AI automation is the primary driver behind these shifts. The most dramatic changes began appearing in late 2022, coinciding with the release of generative AI tools like ChatGPT, which the report cites as a major turning point in the labor market.

The findings are based on employment data from ADP, the largest payroll processor in the U.S., covering millions of workers across thousands of businesses.

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