Young workers fear AI is taking jobs, the data says otherwise

A new survey reveals that over a quarter of young people aged 18 to 34 believe that artificial intelligence is costing people jobs, even though the actual impact of AI on job loss remains relatively small. Despite this perception, there is little evidence to support the claim that AI is causing significant job displacement. A study by Stanford's Institute for Economic Policy Research found that the unemployment rate for workers exposed to AI has increased by only 0.77 percentage points since 2022, compared to a rise of 0.85 percentage points for those in the least exposed occupations.

This suggests that the overall labor market is softening, rather than being negatively impacted by AI.

However, the negative perception of AI among younger workers is impacting their outlook on the economy and their job prospects. Nearly half of the respondents rated the economy as poor, and 35 percent believed that finding a new job would be very difficult. When asked which party they trusted to lower the cost of living, only 36 percent chose Democrats, while 22 percent selected Republicans.

The survey found that young people are largely pessimistic about the economy and their future job prospects, and they tend to blame AI for these challenges.

Despite the pessimistic feelings, the Stanford study found that AI has had little impact on the job market. While employment growth in coding-heavy occupations has slowed somewhat, it remains positive. Companies that have adopted enterprise AI have actually seen a 10 percent increase in employment within two years of adoption. The study suggested that AI might actually be fueling some job growth.

Even though nearly half of the respondents feel that the economy is poor, 71 percent of them reported feeling more comfortable or more comfortable compared to a year ago.