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AI Impact on Headcount - Stanford Study (Patreon)

Published:
2025-08-27 17:40:13
Imported:
2026-06
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Content

Young people starting careers in jobs like software development or customer service, which use a lot of AI, have seen a 13% drop in job opportunities since AI became common. This drop happens even when accounting for company-specific issues. Meanwhile, more experienced workers in these same jobs are either keeping their jobs or seeing job growth.

Paper here https://digitaleconomy.stanford.edu/wp-content/uploads/2025/08/Canaries_BrynjolfssonChandarChen.pdf

While the job market is growing overall, young workers (ages 22-25) aren’t seeing much of that growth. In fact, jobs in AI-heavy fields dropped by 6% for them between late 2022 and July 2025, while older workers in the same fields saw 6-9% job growth. This shows AI is hitting young workers’ job prospects hard.

For young workers, AI’s impact shows up more as fewer jobs rather than lower pay. Salaries for young and older workers, whether in AI-heavy fields or not, haven’t changed much, suggesting that AI is making it harder to find jobs, not necessarily lowering wages.

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Comments

Chewie

Indeed I do have concerns what my young children's potential future careers will be Slightly less worried when hopefully I can stack and invest enough for them to have a comfortable life.

Harbinger of Sound Money

Interesting stats! Maybe this means mature generation who are in more senior roles are doing self preservation for time being, at expense of junior roles which AI is good enough to replace now. Crazy times ahead!

iroc007

Buy $SOL?

Pat Foster

From what I see in response to “…Salaries for young and older workers, whether in AI-heavy fields or not, haven’t changed much, suggesting that AI is making it harder to find jobs, not necessarily lowering wages”, I can certainly say that roles that have part of their responsibility in increasing the AI adoption within the company, wages are increasing.

Chuck3Putt

This seems sensible to me. The post-Covid interview and then ghost mantra has burned many managers. They will continue to keep solid long-term employees, but will use AI and robotics for new positions. There is a multiplier effect with the work ethic and the immense reduction in cost for automation. This will go in waves.

Chuck3Putt

I also wonder aloud if the employee retention will result in raises for those reliable humans. They get to "supervise" the transition and there will obviously be enough profit increase to allow it

BigJ

That partially explains why I'm not seeing the AI impact, as I'm not tied in with the fresh out of college demographic, as i'm in the dinosaur demographic.

Ω

We have one child with two incomes. Our child will be fine financially, but I hope he will be able to find purpose in his life because as we know money can only sometimes create happiness if you earned it yourself.

believer

Telling my daughter investing in hard assets (BTC, TSLA, SOL, etc) is the only way for her and her generation to make it "out of the matrix." I've already escaped, thanks to IA. I am 58. Retired last month (Thank you James. 😉). I now feel obligated to "pass it along" and share as much knowledge with my daughter's generation (especially) to help them become "free" as well. 🫡

c5miket

Ok, I'll say it. Has anyone managed employees in both of these age groups? Maybe it has nothing to do with AI at all. Yes, it's a generalization and doesn't apply to everyone.