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Stanford Study Links Generative AI to 13% Drop in Entry-Level Jobs for Young Workers

The analysis of millions of ADP payroll records points to AI automating codified tasks that displace entry-level hiring.

Overview

  • Researchers using ADP data through July 2025 found employment for 22–25-year-olds fell about 13% in occupations most exposed to generative AI.
  • Declines are concentrated in roles where AI can automate tasks, notably software development and customer service, while less-exposed fields such as health aides saw gains for young workers.
  • Older workers in the same AI-exposed occupations were largely unaffected or added jobs, reflecting the value of tacit, experience-based skills.
  • The study reports little evidence of wage effects so far, indicating the primary impact has been on hiring levels rather than pay.
  • The authors caution the results do not prove causation, and outside analysts note ADP sample limitations and excluded workers without job titles, fueling calls for closer monitoring and targeted reskilling.