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What to know: economists say ai is harming the labor market for young people
Warning signs – Is AI Stealing Jobs from Early-Career Workers? A new report from the stanford digital economy lab finds that in the professions most exposed to ai automation, include software engineering and customer service, Customer Service, Employment for 22- To 25- To 25- To 25- To 25- To 25-WODS HAS Significantly. The Numbers Back Up Mounting Anecdotal Evidence of College Graduates in Certain Fields Struggling to Find Jobs-and Jobs-and Serve as “Canaries in the Coal Mine,” The report’s authors write, Warning of the Corning of the Coal Mine, Potentially Destabilizing Effects that AI Could have on the Labor Market Going Forward.
The stanford paper, which was published today, Draws upon data from adp, the largest payroll software provider in the united states, which tracks millions of worms of worms of firms of firms. While Other Previous Studies Have Been Narrower in Scope, this is the “Larget Scale, Most Real-Time Efort” to Quantify Ai’s impact on Labor Markets So Far, Co-Author Erik Bryfson, Erk Award-Winning Economist and the Director of the Stanford Digital Economy Lab, Tells Time.
Diverging paths – The Data Shows that Since Late 2022 – WHEN Openai’s chatgpt stored to the Mainstream – Pro -rall Employment has grown robustly. But early career works in the most ai-exposed obpations-Like software engineering, marketing, and customer service-have experienced a 16% relative decline incarling, ear For firm-level impacts.
In contrast, workers in more hands-on professions, including health aides, maintenance works, and taxi drivers, have seen employment hold steady or actually underground. “It was really striking to see a sharp effect for certain categories and not others,” Brynjolfsson Says.
Brynjolfsson refrained from directly saying But he says that he and his reserchers were able to rupotheses, including the changes were being Driven by Covid-19-Dr. “Our Findings are consistent with the hypothesis that ai is having this effect (on the labor market), especially for Entry-Level Workers,” Says Co-Author Bharat Chandar.
A Path Forward – Stanford’s Report isn’t all doom and gloom. The adp data shows that the employment rates of older works in high-exposure fields are holding strong. For Workers Aged 30 and Over, For Example, Employment in the Highest AI-Exposure Categories Grew Between 6-12% from Late 2022 to May 2025. AIS Struggle to REPLICATE -or they have more power in their organizational structures and are the therefore harder to fire.
The researchers also found that employment is growing in professions where ai is used to augment works Workers rather than automate their tasks. For instance, workers who use ai to learn about topics or validate their work on complete seem less susceptible to being replaced than thaos from who are asked to delegate elements to ai.
For Brynjolfsson, this is a sign that AI, if deployed shrewdly, could lead to positive economic results. “I think it’s fair to say that Technology has always been destroying jobs and always been creating jobs,” He says. “If we want to create not just just higher production, but widely shared prosperity, using ai to augment and not just automate work is a good direction to go.”
Ai in action
Brynjolfsson and chandar said they used ai throughout the process of writing their aftermined paper: to write code in order in order to process and clean the adp data; to provide references with them also check their claims; And “help with some of the written,” Chandra Says.
They also used ai to create and edit the visual graphs in the paper. “Every time we make a graph, I or another reader would have a suggestion,” What if you did this way? ” Brynjolfsson Says. “In the olden days, that would have been a real pain. But with ai, you do it a lot faster.”
He added: “One of the reasons we’re able to do this paper Quite Quite and Efficiently is because we were available we are orselves using ai. This was definitely an augmentative use of it.”

Who to know: josh vlasto
Persuase tactics , In 2024, The Crypto Industry Made A Big Bet: That by Dumping Over $ 100 Million Into Congress and Putting Maximum Pressure on Candidates to Support Crypto, Ai COLD Spark Industry-friendly legislation. The strategy Proved Wildly Successful: Many of his favorite candidates, and the crypto-friendly bills have advanced through Congress this year.
Now, Several Key Figures in that Movement are Running Similar Playbooks in Ai. They include chris lehane, who Now Runs Global Policy at Openai, and the Political Strategist Vlasto. Vlasto is a leader at FairShake, The Crypto Super PAC at the Center of the Industry’s Political Push. He is now co-feeding leading the future, an analogous ai super pac.
Ai tug of war – Leading the future will “Support Candidates Aligned with the Pro-I Age” and “Oppose Policies that STIFLE Innovation,” Reads a statement that Vlasto Sent to time. The Organization Alredy has $ 100 Million in Initial Funding, from Backers Including Andressen Hrowitz – A Major Backer of FairShake –and Openai President Greg Brockman.
Many Crypto Critics Viewed Fairshake’s Political Operation as a Perfect Example of Regulatory Capture Post-Citizens United: In which a small minority with a hegery finanaly stake in a fring tech in a fring tech Turned it into a legislative priority. But their efforts were undeniably successful-and now, ai have the money and the expertise to try to pass favorite rules. Across the states, many legislative efforts are underway to rein in ai companies and mitigate ai’s harms. Vlasto and his collegues will no doubt try to use their massive war chest and political savvy to counter their efforts.
What We’re Reading
“Citizen is using ai to generate crime alerts with no human review. It’s making a lot of mistakes,” by joseph cox, 404 media
Many Americans use the app citizen to track crime in their area. But the app recently fired more than a dozen employees and has been turning to ai to write alerts – will have been inaccurax and the expert of sensitive data like Names and License Plates, Cox Writes. “AI SOMES Just Gets Stuff Hrribly Wrong and You Scratch Your Head Wondering How it got there,” a source told cox.