TLDR: A recent Stanford University study indicates that artificial intelligence is significantly disrupting the entry-level job market, with early-career workers (ages 22-25) in AI-exposed occupations experiencing a 13% decline in employment since late 2022. In contrast, older, more experienced workers in the same fields have seen stable or even increased employment, suggesting AI primarily automates codified knowledge typically acquired early in a career.
A groundbreaking study from Stanford University’s Digital Economy Lab has unveiled a stark reality for the modern workforce: artificial intelligence is disproportionately impacting entry-level positions, making it increasingly challenging for young professionals to secure jobs. The research, titled “Canaries in the Coal Mine? Six Facts about the Recent Employment Effects of Artificial Intelligence,” was co-authored by economists Erik Brynjolfsson, Bharat Chandar, and Ruyu Chen. It leverages extensive payroll data from Automatic Data Processing Inc. (ADP), covering millions of employees across tens of thousands of U.S. firms through July 2025, offering a near real-time snapshot of AI’s labor market effects.
The most striking finding reveals that early-career workers, specifically those aged 22 to 25 in occupations most exposed to AI, have experienced a significant 13% relative decline in employment since late 2022. This period coincides with the rapid proliferation of generative AI tools like OpenAI’s ChatGPT. Conversely, more experienced workers in these same fields have largely maintained employment stability, with some even seeing job growth.
Economist Erik Brynjolfsson highlighted the core reason for this disparity, stating, “That’s the kind of book learning that a lot of people get at universities before they enter the job market, so there is a lot of overlap between these LLMs and the knowledge young people have.” This suggests that AI systems excel at automating tasks that rely on “codified knowledge”—information typically gained through formal education and readily available in digital formats. Older workers, however, possess “tacit knowledge,” which includes idiosyncratic tips and tricks accumulated through years of experience that are not easily codified or replicated by AI.
Industries experiencing the sharpest declines for younger workers include software engineering and customer service, both of which saw nearly a 20% drop in entry-level positions between late 2022 and mid-2025. Other affected fields include accounting and auditing, secretarial and administrative work, computer programming, and sales. In contrast, employment for older workers in these roles actually increased. Fields less exposed to AI, such as production supervision, stock clerks, and health aides (e.g., nursing aides), showed no significant impact and continued to grow.
The study emphasizes that the impact is concentrated in roles where AI automates human work rather than augmenting it. For young professionals, the implication is clear: mastering AI as a tool is becoming indispensable. Reports indicate that entry-level AI roles saw a 12% salary increase from 2024 to 2025, underscoring the value of AI proficiency.
Also Read:
- Sky News Report: AI’s Impact on the Job Market – 40 Roles at High Risk and 40 Deemed Secure
- Australian Gen Z Workers Embrace AI Despite Job Market Concerns
This research provides compelling evidence that the AI revolution is not a distant threat but an ongoing transformation, particularly for those just beginning their careers. It underscores the urgent need for upskilling initiatives and strategic workforce planning to adapt to an evolving job landscape where AI literacy is paramount.
