Stanford Study: Employment Rate for Ages 22-25 in AI-Exposed Jobs Drops 19%

According to recent research by economists at Stanford University, employment rates for young adults aged 22-25 are noticeably declining in occupations where AI has a significant impact on work. This suggests that entry-level labor is being displaced by AI, while senior workers remain largely unaffected.

Key Data and Analysis

• Widening Employment Gap: In occupations with the highest AI exposure, employment levels for workers aged 22-25 were 19% lower than those of their peers in occupations with less AI impact. This gap was 13% last year and is widening over time.
• Differences by Age Group: Since 2022, employment for this age group in the top 40% of occupations with high AI impact has decreased by approximately 11%, while employment in the bottom 60% of occupations with low AI impact has increased by 10%.
• Cause Analysis: The decline in employment is primarily attributed to a drop in hiring rates in these fields, rather than an increase in layoffs or resignations.

Impact by AI Usage Type

The research team utilized Anthropic's economic indicators to categorize AI usage into 'automative' and 'augmentative'.

• Automative-Centric Occupations: Job roles such as accountants and administrative staff, where AI is widely used to fully replace human tasks, showed the most pronounced decline in youth employment.
• Augmentative-Centric Occupations: Job roles such as CEOs and nurses, where AI is used to enhance work efficiency, showed relatively minor or unclear impacts on employment.

These results support the hypothesis that AI's automation-oriented usage displaces labor, whereas its augmentative usage is neutral or a positive factor for employment.