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AI poses greater threat to entry-level jobs, new study finds

Entry-level employment in AI-exposed sectors dropped 13% for workers aged 22 to 25, while jobs for experienced workers rose, reflecting AI's role in automating routine tasks, Stanford researchers said.

  • On Tuesday, Stanford University researchers published a study using ADP payroll records for up to 5 million U.S. workers, finding a 13% relative employment decline for early-career workers ages 22 to 25 in AI-exposed jobs.
  • As generative AI spread since late 2022, researchers observed AI automates codified tasks common in early-career workers, while experience buffers older, more experienced workers from displacement.
  • The analysis reveals occupation-specific contrasts as early-career software developers fell nearly 20% by July 2025 and workers aged 22-25 in AI-exposed occupations dropped 6%, while workers aged 35-49 grew by over 9%.
  • Facing scarce entry-level openings, young workers shift career plans away from AI-exposed jobs as recent college graduates struggle, prompting U.S. policymakers to pursue legislative responses to AI harms.
  • The researchers caution that automation-driven substitutions, not augmentative AI uses, are tied to employment declines, and Anthropic CEO Dario Amodei expects unemployment to spike to 10%-20% in the coming years.
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Axios broke the news in Washington, United States on Tuesday, August 26, 2025.
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