Particle.news

Download on the App Store

Stanford Payroll Study Finds GenAI Is Cutting Entry-Level Hiring for Young Workers

High-frequency ADP payroll data link the post-2022 generative-AI surge to reduced hiring of 22–25-year-olds in the most exposed occupations.

Overview

  • Researchers report a 13% relative employment decline for ages 22–25 in the most AI-exposed jobs since late 2022, with some measures ranging from about 6% to roughly 16%.
  • Losses are concentrated where AI substitutes for routine tasks, such as software development and customer support, while augmentative uses show stable or rising entry-level employment.
  • The labor-market adjustment is occurring mainly through reduced hiring rather than wage cuts, with little change in salary trends by age or exposure.
  • The analysis draws on millions of ADP payroll records and ties the timing to the generative-AI rollout, controlling for COVID-era effects, interest-rate shocks, and firm-level hiring swings.
  • The findings land as a separate MIT report’s 95% no-ROI claim faces methodological criticism, reinforcing calls for better monitoring, reskilling, and clearer evaluation of automation versus augmentation.