AI Spares Broad Workforce but Hits Young Workers, Stanford Study Finds

Stanford University’s Digital Economy Lab analyzed payroll records from ADP to assess how generative AI is reshaping US employment. The study found no evidence that artificial intelligence has triggered mass layoffs across the broader labor market. Instead, the disruption appears concentrated in entry-level roles built around standardized tasks and codified knowledge, which AI systems can more readily reproduce. That pattern matters because fewer junior openings could weaken a traditional pathway through which young workers gain experience and advance.

The findings, released on Aug. 26, 2025, draw on employment data through July 2025. Since late 2022, employment among workers aged 22 to 25 in occupations with the highest AI exposure fell 13% on a relative basis, while employment for more experienced workers in the same fields rose about 6% to 9%. The researchers said reduced entry-level hiring, rather than broad-based dismissals, is the clearest labor-market effect so far, making younger employees the first group to absorb the shock.