Follow ZDNET: Add us as a favorite source On Google.
Key takeaways of zdnet
- Admission level jobs in susceptible areas for AI automation are seeing a decline.
- Workers are seeing the biggest decline in employment of 25 and less.
- Jobs are stable or growing in areas where AI growth (not automated) works.
Entry-level software workers are feeling the brunt of AI Boom, according to this Latest conclusions from three Stanford Economists,
A new paper evaluating the impacts of AI on the workforce tracked the payroll record of millions of workers through July 2025, to offer real-time view of the labor market fluctuations. Researchers found that employment growth for young workers has been stable since 2022 when the deployment of AI started.
Also: Manufacturing firms are using AI to fill the lack of labor – but this human skill still matters.
Workers between 22 and 25 years of age see the most decline in employment-12 points, especially to be accurate in areas that are the most “AI-exposed” or where AI automatically automatically, such as software development or customer service. Software engineer jobs for workers between 25 and 25 years of age recorded a decline of about 20% in 2025 in 2022. Marketing managers and sales roles show a similar decline, but with small magnitude. On the other hand, the old workers continued to see the increase in jobs.
Economists offer a hypothesis as to why AI is replacing young workers instead of older people.
“From the nature of the model training process, the AI takes place of knowledge, ‘Book-learning’ that creates the origin of formal education. AI may be less capable of changing silence knowledge, unknown tips and tricks accumulating with experience,” they write.
Also: Will AI replace software engineers? It depends on who you ask
Anthropic CEO Dario Amodi has made similar predictions that AI can cut entry level jobs from one to five years, while brings unemployment up to 20%.
However, paper is not all doom and sadness. Employment is more stable and growing in areas where AI increases, rather to automate it.
Economists writes, “In jobs in contact with AI, young workers have experienced comparative employment growth for old workers.” In health aid jobs such as nursing colleagues, psychiatric colleagues, and home health colleagues, the increase in employment among young workers is faster than old workers.
Paper shakes the head for related research, which, as a whole, depicts a tarnished picture of young developers’ job possibilities. It also raises questions about the role of higher education in the A-AI world. Economists stated that for businesses with high stocks of college graduates, employment has declined, but in businesses with fewer shares of college graduates, employment increases. In addition, AI leaders themselves have admitted that AI tools, many of which can successfully automate coding, if incomplete, at a much faster speed than humans, a profession is threatened as a profession.
Nevertheless, the AI-generated code should usually be vetted by human developers.
Also: Microsoft is saving millions with AI and is away from thousands – where do we go from here?
American is hesitant about the deployment of AI, and the conclusions of paper reflect this exhaustion. According to a study by Reuters and Ipsos, 71% of Americans are afraid that AI will displace human workers.
