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ZDNET's key takeaways
Entry-level jobs in fields susceptible to AI automation are seeing a decline.
Workers 25 and under are witnessing the greatest decline in employment.
Jobs are steady or growing in fields where AI augments (not automates) work.
Entry-level software workers are feeling the brunt of the AI boom, according to the latest findings from three Stanford economists.
A new paper evaluating AI's effects on the workforce tracked millions of workers' payroll records through July 2025 to offer a real-time view of labor market fluctuations. Researchers found that employment growth for younger workers has remained stagnant since 2022, when AI's deployment began.
Also: Manufacturing firms are using AI to fill labor shortages - but this human skill still matters
Workers ages 22 to 25 see the steepest declines in employment -- by 12 points, to be exact -- especially in fields that are the most "AI-exposed" or where AI automates tasks, like software development or customer service. Software engineer jobs for workers aged 22 through 25 declined nearly 20% in 2025 compared to their peak in 2022. Marketing managers and sales roles see a similar decline, but with smaller magnitudes. Older workers, on the other hand, continue to see job growth.
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