AI Reduces Entry-Level Jobs, Hindering Young Workers’ Market Access in US and UK

A recent Indeed Flex survey reveals that 62% of workers in the US and UK believe artificial intelligence (AI) is reducing hiring for entry-level positions by automating basic tasks once done by young employees. However, only 31% have personally observed a decline in opportunities in their fields, indicating that concerns about AI’s impact are spreading faster than actual changes.

Despite this perception gap, studies confirm a real effect. A November 2025 Stanford-led study by economist Erik Brynjolfsson found a 16% drop in employment among young workers in AI-exposed jobs since late 2022, with a nearly 20% decline among developers aged 22 to 25. Federal Reserve Bank of Dallas data also shows a gradual decrease in young workers in these roles. The main cause is not layoffs but a slowdown in new hires, meaning fewer entry-level jobs are created.

Companies are not only cutting positions but also transforming them. A GMAC survey found that one in three employers replaces entry-level roles with AI, especially in tech and manufacturing. Additionally, a Strada Institute study reports that employers are raising skill requirements for entry jobs, demanding stronger analytical and judgment abilities than before.

Researchers from Yale University warn that AI’s most significant labor market impact may be the disappearance of entry points rather than existing jobs. This trend threatens organizations’ ability to cultivate future managers and leaders. The article also briefly notes the Israeli Aerospace Industries’ development of an AI-powered combat aircraft, highlighting AI’s expanding role in various sectors.