AI could be suppressing wages for young workers

"For software developers, there's been about a 20% decline for entry-level people aged 22 to 26. For call centers, there's been about a 15% relative decline. Mid-career people are doing okay. The more senior people are doing well. Instead of cutting wages, companies have stopped hiring for those positions."

"AI is automating work previously done by entry-level workers, which is also reshaping career pathways. Hiring for mid- and senior-career positions that focus on value creation remains stable. AI's impact so far has been more evident on employment but we're beginning to see a little bit of effect on wages, too."

"59% would use AI as a reason to justify hiring freezes or layoffs, because it plays better. Companies often blame the technology for layoffs, even when it's not a major factor in cuts, demonstrating an emerging trend of AI washing in corporate decision-making."

AI adoption is significantly impacting entry-level employment in software development and customer service, with a 20% decline in entry-level software developer hiring and 15% decline in call center positions for workers aged 22-26. Rather than reducing wages, companies are implementing hiring freezes for these roles. Mid-career and senior positions remain stable as they focus on value creation. While employment effects are evident, wage pressure is beginning to emerge but remains difficult to measure comprehensively. Other industries like home healthcare remain unaffected by AI automation. Additionally, companies increasingly cite AI as justification for layoffs and hiring freezes, sometimes exaggerating its role in employment decisions.

Read at Computerworld