AI Adoption Linked to 258,000 US Job Losses, Entry-Level Roles Hit

Recent studies and surveys reveal a significant impact of AI adoption on the U.S. labor market, particularly affecting young and entry-level workers. Research from Stanford University and payroll data analyses indicate a 13% decline in employment among workers aged 22-25 in AI-exposed roles like software development and customer service, highlighting an 'AI job squeeze' that eliminates crucial entry points for young professionals. Supporting this, an Indeed Flex survey found that 59% of recent graduates struggle to find full-time entry-level jobs, with 79% attributing this to AI's influence and many turning to temporary or gig work for financial stability. The St. Louis Federal Reserve's study further links rising unemployment in sectors with heavy AI adoption, revealing a correlation between AI integration and job losses, especially in industries that embraced generative AI intensively. These findings suggest AI is reshaping employment patterns by displacing junior roles rather than experienced workers, prompting concerns about workforce development and economic inequality in the evolving job market. Employers and workers alike face challenges adapting, with many young workers seeking new skills or alternative work arrangements as AI continues to transform the employment landscape.