Entry level jobs are an endangered animal, at least in professions exposed to disruption from AI. While new grads are still seeing opportunities in fields like real estate, utilities and construction, the overall hiring market has been brutal: a whopping 48% of recent college graduates were unemployed (5.6%) or underemployed (42%) and working in jobs that didn’t require a degree in the second quarter of 2026.
Indeed, an analysis from Stanford Digital Economy Lab finds young people may be gravitating toward “AI-proof” jobs involving physical labor, social interaction, and other skills that are harder to automate. The researchers drew upon ADP administrative payroll data covering millions of U.S. workers to examine what has happened to employment since generative AI became widely available.
In professions with high exposure to AI like customer service and software engineering, employment among workers ages 22 to 25 is 19% lower than it would be if it had kept pace with employment among the same age group in other professions since 2022, the research shows.
While employment of workers aged 22 to 25 fell by about 11% in the 40% of jobs that were most exposed to AI, it rose about 10% in other, less AI-exposed job categories. The gap for younger workers has widened considerably since last August, when the researchers identified a 13% divergence. Slower hiring, rather than increased “separations,” has driven the lower headcount among recent graduates, which is concentrated in professions where AI automates human tasks rather than complements them.
The apparent trend is also limited to younger workers; the study found no evidence of “widespread, economy-wide job displacement” associated with AI. For experienced workers, there was no gap whatsoever between more AI-exposed and less AI-exposed roles.
The findings are the latest evidence that AI is transforming early-career knowledge work, eliminating jobs and creating anxiety among younger workers. According to the Pew Research Center, the percentage of people under 30 who believe AI will lead to fewer jobs rose 12% in two years, to 73%.
The technology is also changing expectations for junior workers who do land entry level jobs in fields impacted by AI. According to a study by PwC, junior hires at such jobs are seven times more likely to require mid-career capabilities such as leadership and strategic thinking.
Along with job security, higher education costs, and other issues, AI may be contributing to increased Gen Z interest in skilled trades like construction and plumbing.
