The Evidence That AI Is Destroying Jobs For Young People Just Got Stronger
Derek Thompson, Derek Thompson (Substack) · AI & Automation
New payroll data covering millions of US workers shows employment falling for 22 to 25 year olds in the jobs most exposed to AI, while older workers and less exposed jobs hold steady. Thompson, who had come to doubt the AI jobs story, now says this is the most compelling evidence yet that AI is already affecting young people's work, not just in some future scenario.
Read the original →- Stanford economists using ADP payroll data found a 13 per cent decline in employment for 22 to 25 year olds in highly AI-exposed jobs, such as software developers and customer service agents, since ChatGPT arrived.
- The decline shows up even within the same companies, which the authors say rules out firm-wide shocks such as interest rate rises as the main explanation.
- Losses cluster in jobs where AI automates tasks rather than assists people. The authors suggest, tentatively, that AI overlaps most with the textbook knowledge new graduates bring.
Evidence from the source
But I’m updating in the direction of trusting my initial gut instinct. I think we’re looking at the single most compelling evidence that AI is already affecting the labor force for young people.
The strongest objection
The study is observational, not a causal test, as the authors say themselves. Junior hiring in software and customer service could be falling for other reasons, such as post-pandemic over-hiring or a slowing economy, and the result covers some exposed occupations rather than young workers in general. Thompson has also changed his view on this question several times in five months.
“I think we’re looking at the single most compelling evidence that AI is already affecting the labor force for young people.”