Data Says Artificial Intelligence Is Destroying Jobs For Young People

To investors,

A recent study spells disaster for many young people entering the workforce right now. Simply, these young people are getting smoked in the job market due to artificial intelligence. The new paper tried to understand where artificial intelligence is driving more jobs in the economy and where AI is destroying jobs.

And, as expected, the conclusions are a doozy.

The paper is titled “Canaries in the Coal Mine? Six Facts about the Recent Employment Effects of Artificial Intelligence” and it analyzed data from the largest payroll software provider in the United States.

According to Nic Carter, “the authors of the paper looked at job data since 2022 and divided jobs into most and least exposed to AI (quintile 1= least exposed, quintile 5 = most exposed).”

He says the example "high exposure" (quintile 5) jobs include:

* software developers

* customer service and support

* clerical roles

* writing and media

* business analysts

So what is happening to young people in these job categories? Do they have more or less opportunity thanks to artificial intelligence?

The Economist’s Mike Bird highlights one of the main conclusion from the study: “since the widespread adoption of generative AI, early-career workers (ages 22-25) in the most AI-exposed occupations have experienced a 13 percent relative decline in employment.”

This is a trend we have been talking about over the last few weeks, but now we have concrete data to quantify just how severe the situation is. A 13% relative decline in employment is a very big deal. Some may even call it catastrophic for a cohort of workers who are trying to figure out how to get their professional footing.

If we dig deeper into this paper, not only did the paper find “substantial declines in employment for early-career workers in occupations most exposed to AI.” But they also “show that economy-wide employment continues to grow.”

That is the killer conclusion in my opinion. Overall, the economy is growing jobs, but young people in AI-related jobs are falling significantly behind. You think that is going to be a problem in the future? Obviously. And what happens when AI continues to get better and better over time? Remember, right now is the worst the technology will ever be.

So it is entry-level workers today, it will be more senior workers in a few years.

But before young people go cry in a corner, there is a positive perspective on this news as well. Nic calls it a “K-shaped AI hypothesis.” I call it “Compete, don’t complain.”

The idea is that AI makes it easier than ever to make a living. The barriers to starting a company, building a product, or selling a service have never been lower. Rather than praying someone is going to hire you, young people have the opportunity to accelerate their achievement of financial freedom by creating jobs for themselves.

Do you need curiosity, intelligence, and creativity? Absolutely. Do you need to have agency and be a self-starter? You got it. But if a young person is hungry for success, these new tools open a world of possibility that never existed before.

So the data is clear — young people are having a harder time finding work thanks to AI. But these same people can now make significantly more money, and do it much faster and easier, than their older peers.

AI is a tool. You can use it for good or bad. You can use it to create jobs or destroy them. The choice is yours. Winners write history, so my suggestion is for everyone to spend a few hours to become proficient with the latest AI tools. Your career quite literally may depend on it.

Hope you all have a great day. I’ll talk to everyone tomorrow.

- Anthony Pompliano

Founder & CEO, Professional Capital Management

Why Is Bitcoin’s Price Going Down?

John and Anthony Pompliano discuss bitcoin, why the price is going down, what’s going on with the Federal Reserve, Lisa Cook and the pressure from the White House, prediction for the next 10 years of the US economy, and will Powell cut interest rates?

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