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Stanford Data Links Generative AI to Drop in Entry-Level Hiring

Evidence points to losses for new entrants in AI-exposed roles, with wages stalled since 2022.

Overview

  • Stanford’s Digital Economy Lab analyzed ADP payroll records from 2022 to 2025 and found employment for 22–25-year-olds in high AI‑exposure jobs fell 13%.
  • Headcount for early-career software developers dropped nearly 20%, with additional declines reported for customer service agents, receptionists and translators.
  • In the same AI‑exposed occupations, older workers’ headcounts were flat or slightly higher compared with pre-ChatGPT levels.
  • Young workers in low‑exposure fields, including industrial roles, nursing and retail supervision, saw headcounts grow over the past few years.
  • Researchers also found wages have been stagnant since 2022, and separate reporting highlights that some companies cite AI during broader cost-cutting as an MIT study reports weak revenue returns for most AI rollouts.