Stanford University issues chilling AI job warning

Smart tech is pushing young professionals out of the market, the report claims

The number of job opportunities for young professionals in AI-affected sectors across the US has dropped by 13% over the past three years, according to a report from the Stanford Digital Economy Lab. Researchers cautioned that smart technologies are swiftly reshaping career prospects for entry-level workers.

This figure adds to growing concerns that recent college graduates are struggling to find work in fields which are shrinking due to automation. The report, ‘Canaries in the Coal Mine? Six Facts about the Recent Employment Effects of Artificial Intelligence,’ warns that these early signs may indicate broader labor market disruptions as AI adoption accelerates.

The study identifies software development, customer service, accounting, and administrative support as the most affected industries.

The impact is especially strong among workers aged 22 to 25, with employment in these roles declining by 6% since late 2022. Entry-level software developers have been hit hardest, facing a 20% drop in job postings for their age group.

In contrast, more senior employees appear to be less affected. In fact, in the four most vulnerable industries, employment among older workers has increased 6–9% since 2022.

Meanwhile, in sectors less exposed to AI-driven automation, such as logistics, maintenance, and other hands-on fields, the number of entry-level positions for young workers has grown 6–13%.

The report also highlights that employment is declining among young professionals in roles where AI primarily automates tasks, while growth is occurring in occupations where it plays a more supportive role.

Researchers examined whether other economic factors might explain these shifts, but concluded that AI-driven automation is the primary culprit driving the trend.

These changes became most noticeable in late 2022, coinciding with the rapid rise of generative AI tools. The public launch of ChatGPT in November of that year marked a turning point, according to the study, and is seen as a major driver of recent adjustments in the labor market.

The report draws upon data from ADP, the largest payroll software provider in the US, which tracks millions of workers across tens of thousands of firms.

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