AI’s Impact on Young Workers
A study from Stanford University reveals that AI is affecting job opportunities for some young American workers, particularly in fields where tasks are easily automated, like software development and customer service.
The report from the Wall Street Journal highlights that generative AI tools, such as ChatGPT, are having a notable impact in areas where automation is more practical. Researchers examined anonymized employment data from millions of individuals across numerous companies and found that young workers in prominent roles are facing significant obstacles in finding and keeping jobs.
This research zooms in on jobs where AI can perform tasks like software development, customer service, translation, and reception duties. Since the launch of ChatGPT in late 2022, employment in these areas has started to decline, with younger workers being particularly affected. For instance, the number of software developers aged 22 to 25 fell by nearly 20% by July 2025 compared to late 2022. Meanwhile, the employment figures for those aged 26-30 have remained relatively stable, and older workers in the same field have continued to see growth.
Eric Brynjolfsson, a Stanford economist and co-author of the study, noted, “When you look at young workers who are highly exposed to AI, there are clear and obvious changes.” He indicated that the decline isn’t just due to broader economic issues like Federal Reserve rate hikes or pandemic-related challenges. Even accounting for those factors, the data points to distinct AI-related shifts in the job market.
Interestingly, the study also uncovers contrasting trends in sectors where AI is more of an assistant than a replacement. In roles that enhance human productivity—like certain positions in healthcare—young workers are seeing job growth that surpasses overall market trends. Brynjolfsson commented on the positive aspect of this approach, saying, “We were pleased to see the data that this augmentation approach could benefit people and lead to more jobs.”
Stanford’s findings align with other evidence indicating that entry-level workers are facing the brunt of AI’s impact. Reports suggest that just one year post-graduation, the percentage of degree holders in the job market is noticeably dropping, affecting various fields from visual arts to engineering. Unemployment among college graduates seems to be rising faster than among those with only high school diplomas or associate degrees.
Employers are recognizing this shift as well. At Hirewell in Chicago, clients are increasingly opting for AI solutions over entry-level hires. “We’re looking forward to seeing you in the future,” stated Bill Balderaz, CEO of Futurety, a consulting firm that employs AI for social media tasks.
This trend is particularly acute in fields like information technology, finance, insurance, and various technical services. Although these sectors are still on an upward trajectory, they prefer hiring experienced professionals over less experienced workers. Matt Sigelman, president of Burning Glass, described this situation as a “structural shift,” indicating that employers are more likely to reduce entry-level positions while increasing roles for seasoned staff.
