Generative AI Puts Young Workers at Risk as Employment Falls 13%

Generative AI Is Reshaping the U.S. Job Market

A new study by Stanford University reveals that the rapid rise of artificial intelligence (AI) — particularly generative AI — is having a significant impact on job opportunities for young American workers.

The report, published on August 26, analyzed payroll data from millions of employees, sourced from ADP, the largest payroll software provider in the U.S.

Young Workers Hit Hardest by AI Disruption

According to the findings, employees aged 22 to 25 in AI-exposed roles such as customer service, accounting, and software development have experienced a 13% decline in employment since 2022.

In contrast, jobs for more experienced professionals in the same sectors, as well as positions in less-exposed fields like healthcare support, have remained steady or even grown. Notably, jobs for young health aides have increased at a faster pace compared to their older counterparts.

Manufacturing and Supervisory Roles Show Modest Growth

Employment for front-line production supervisors and operations managers also saw growth among younger workers, although the increase was smaller compared to employees over the age of 35.

Why Young Workers Are More Vulnerable

Researchers suggest younger employees are more exposed because AI can easily replace codified knowledge — the type of “book learning” acquired through formal education. On the other hand, experience-based knowledge is harder for AI to replicate, giving older workers an advantage.

Uneven Impact Across Industries

The study emphasizes that AI’s impact on the labor market will not be uniform. In some sectors where AI is used to augment work rather than replace it, employment levels have remained stable.

To ensure accuracy, the researchers accounted for factors such as education levels, remote work trends, offshoring, and macroeconomic conditions that could otherwise distort the results.

Signs of a Structural Shift in Employment

The findings may explain why overall U.S. employment has remained relatively strong since the pandemic, while job growth for young workers has stagnated. This trend also aligns with a Goldman Sachs report earlier this month, which noted that AI-driven changes in the labor market are already visible, especially in technology roles and among younger employees.

AI’s Full Impact Is Still Ahead

The Stanford study warns that most companies have not yet fully integrated AI into daily operations, meaning the job market impact could intensify over time. As AI adoption accelerates, the employment gap between different age groups and skill levels is likely to widen.