If you’ve been feeling anxious about the impact of AI on job opportunities for young workers, you’re not alone—and recent research confirms those concerns. A study led by economists from Stanford University’s Digital Economy Lab revealed that early-career workers, aged 22 to 25, in professions most affected by AI, have seen a staggering 13 percent drop in employment.
This decline stands in stark contrast to the employment trends for older workers and those in less AI-affected roles, where job opportunities have remained stable or even grown. For instance, positions that are not easily replaceable by AI, such as home health aides, are seeing increased job opportunities for younger workers compared to their older counterparts.
As the researchers pointed out, this trend persists even when accounting for various external factors like shifts in remote work, pandemic influences on education, and industry employment cycles. The findings suggest a significant impact of the AI revolution on young professionals in the American job market.
The Impact of AI on Young Graduates
In their paper, the Stanford team utilized data spanning from late 2022 to mid-2025, sourced from ADP, a payroll processing company representing over 25 million workers. The results indicate a notable decrease in jobs for young graduates in industries heavily adopting AI, such as software engineering.
While younger workers struggle to find employment, older employees, particularly those aged 35 to 49, have actually experienced job growth during the same time frame. This disparity may stem from the fact that AI excels at handling basic tasks, typically assigned to entry-level roles, which are essential for developing the skills of newer entrants into the workforce.
Without adequate entry-level opportunities, the future workforce may lack essential training, reinforcing concerns about a potential “lost generation” of early-career professionals. John McCarthy from Cornell University echoed this sentiment, cautioning that unless we adjust policy and hiring practices, we risk a permanent shift in career trajectories for these young graduates.
Automation vs. Augmentation: A Crucial Distinction
Another key finding of the Stanford research was the distinction between companies using AI for automation versus those leveraging it to augment human workers. Job losses were particularly pronounced in roles where AI was employed to largely replace human tasks rather than assist them. In a previous study, co-author Erik Brynjolfsson advocated for a shift in focus toward integrating AI as a tool for collaboration, rather than merely as a means of automation.
The current trajectory suggests that if businesses prioritize automation over augmentation, we may see more job losses for early-career individuals who are integral to developing a skilled workforce. The choice between using AI for task repetition or as a collaborative partner will ultimately shape the job landscape for future generations.
So, how can we navigate these changes? By fostering a culture of augmentation and collaboration, we can harness AI’s potential while providing the training and opportunities young workers need to thrive.
What are the signs that AI is taking jobs away from young workers? Studies indicate a clear decline in employment rates for younger individuals in industries highly impacted by AI technologies.
Will older workers also be affected by AI job displacements? While younger workers face significant job losses, older, more experienced professionals seem to be less affected in AI-impacted sectors.
What types of jobs are considered at risk due to AI? Jobs that consist mainly of basic, routine tasks are more likely to be affected, especially in fields like software engineering or customer service.
How can companies integrate AI without harming job opportunities for young graduates? Emphasizing collaboration and skill augmentation over simple automation can help maintain job opportunities for entry-level positions.
As we continue to witness the evolving landscape of work influenced by AI, understanding these dynamics becomes essential. If you’re intrigued by the future of the workforce and want more insights, take a moment to explore related articles on Moyens I/O.