Stanford study reveals sharp decline in entry-level jobs in AI sectors
(MENAFN) Employment prospects for young workers in industries heavily impacted by artificial intelligence have fallen sharply, with job postings in those sectors down 13% over the past three years, according to findings from researchers at Stanford’s Digital Economy Lab. The study cautions that rapid advances in automation are reshaping opportunities for new graduates and could signal broader disruptions in the labor market.
The report, titled Canaries in the Coal Mine? Six Facts about the Recent Employment Effects of Artificial Intelligence, points to software development, customer service, accounting, and administrative support as the industries most affected. Among workers aged 22 to 25, overall employment in these roles has dropped by 6% since late 2022, with entry-level software developers experiencing the steepest decline—a 20% reduction in job postings.
By contrast, older professionals appear less vulnerable. In fact, within the same four at-risk industries, employment for senior employees has grown by 6–9% since 2022. Meanwhile, in fields less exposed to AI automation, including logistics, maintenance, and other hands-on work, the number of entry-level opportunities for younger workers has risen between 6% and 13%.
The analysis also highlights a clear divide in how AI impacts different roles. Jobs where AI primarily replaces human tasks are shrinking for young professionals, while positions where the technology serves as a tool for support are seeing growth. Researchers examined other possible explanations for these changes but concluded that AI-driven automation is the main driver behind the trend.
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