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Cornering The Job Market: New Stanford Study Proves AI is Displacing Young Workers

• Pete Newsome

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In today's work-related headlines, Pete Newsome from 4 Corner Resources shares the results of a new Stanford study that proves AI is hurting young workers, a tech company that's paying junior AI staff $1,000,000, why workers have FOBO (fear of becoming obsolete), and LinkedIn's claim that professional networks are more trusted than AI and search engines. Also: find out where the word "salary" comes from!

News Articles:
1. https://digitaleconomy.stanford.edu/publications/canaries-in-the-coal-mine/
2. https://www.wsj.com/tech/ai/ai-jobs-entry-level-salary-ab2a11c0?mod=hp_lead_pos9
3. https://hrdailyadvisor.com/2025/08/26/the-rise-of-fobo-why-workers-are-eyeing-ai-proof-careers/
4. https://news.linkedin.com/en-us/2025/networks--not-ai-or-search--are-the--1-trusted-source-amid-infor

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LinkedIn: https://www.linkedin.com/in/petenewsome/
Blog Articles: https://www.4cornerresources.com/blog/

Pete Newsome:

This is Cornering the Job Market. For August 27th, I'm Pete with Four Corner Resources. Sharing the work-related headlines you need to know today, including how 25-year-olds can make a million dollars a year, why some workers have a fear of becoming obsolete and LinkedIn says workers should trust LinkedIn. I know that's a shocker. We'll get to that in a minute, but first there's a new Stanford study called Canaries in the Coal Mine Six Facts About the Recent Employment Effects of Artificial Intelligent and. I could talk for hours about this, because this is fascinating. This is really hard and fast data that shows what's happening, and what it tells us is that AI isn't just transforming work, but it's cutting off the bottom rung of the career ladder for entry-level workers, and you really can't deny that once you see this data. So I'll go through the facts quickly.

Pete Newsome:

Fact one employment for 22 to 25-year-olds in AI-exposed jobs has dropped 13% since late 2022. Ai-exposed jobs I really like that term. There's so many new terms that we encounter almost on a daily basis lately, but this one, I think, is relevant and should stick around AI exposed jobs and to me, that is jobs that are at risk of being fully displaced by AI. So these are fields like software development and customer support, where AI can really automate routine tasks. And we've known this was coming. I've been saying it's already here, but now the data really supports that. The second fact is that older workers and now older is relative here, they classify older as those over 25, in the same roles seem to be doing just fine. Their employment is stable or even rising in some cases. So its study indicates it's not a general downturn, it's really concentrated on entry-level employees.

Pete Newsome:

Fact three the distinction comes down to automation versus augmentation. So in jobs where AI can fully replace human effort, that's where young workers are seeing the decline. But in roles where AI augments human performance, those declines don't appear. Now I think this is really telling as well. I mean, david Sachs, the AI czar, has gone on record a few times saying that he doesn't really think AI is at risk of replacing jobs. One of his quotes is it's actually very hard to replace a human job entirely. I think it's easier to replace pieces of it, and this study shows that statement really doesn't hold up. These jobs are being replaced entirely. So it's not just about augmentation, it's about full automation taking place.

Pete Newsome:

Fact four it's not just about company-wide slowdown. So the study indicated that you can't really blame just what's happening with companies as a whole. This is specific to the entry-level young workers out there. Fact five wages haven't taken a hit, so compensation is basically flat, and the study found that AI's first effect is reducing head count, not cutting pay. And then fact six is this pattern holds everywhere. They looked at well beyond just tech companies. They looked at remote jobs, compared different industries and the story is the same. It's systemic and it's really been growing since about 2022. So what they shared was that these six facts provide early, large-scale evidence consistent with the hypothesis that the AI revolution is beginning to have a significant and disproportionate impact on entry-level workers in the American labor market.

Pete Newsome:

So what does that mean? Well, it means AI isn't just about streamlining tasks, it's reshaping who gets the opportunities in the first place, and the Gen Z workers are the ones who are being squeezed out right now. This is scary, because if there's no entry-level pipeline, where will the next generation of skilled workers come from? This is a massive challenge for everyone involved, from educators to employers and, of course, the policymakers. You can argue whether government should be involved in any of this, but it is going to have such an impact on all of us over time. I'm not happy that this is happening. It's inevitable that it's happening. But I'm happy we're seeing this hard and fast data being reported now, because you can't deny this transformation anymore. So if that's the bad news, at least for young workers.

Pete Newsome:

Meanwhile, in the Wall Street Journal there's an article that is titled these AI skilled 20-somethings are making hundreds of thousands a year. It says that entry-level AI professionals saw a 12% increase in salaries from 24 to 25 and are advancing to management roles at twice the rate of their peers in traditional technology fields. So I guess if you are using AI and that is what your career and job consists of you're going to be in good shape. I mean, what a tale of two polar opposite scenarios, right? But some of the numbers that they're reporting is really staggering. I mean. It says entry-level roles in AI and machine learning specifically, are paying between $190,000 and $260,000 in base salary alone. I mean, think about that. Those are massive numbers that we've just never seen before.

Pete Newsome:

Now Ali Godsi is the CEO of Databricks, if I pronounce that right. He says that they definitely have junior people making a big impact and they're getting paid a lot. Under 25, you could be making a million. I mean, that is a direct quote from the CEO of this company, who's a data analytics software company the CEO of this company, who's a data analytics software company. But he also said which I thought was curious that they can't. He said we can't for the life of us get the more senior people to adopt it. Why not? I mean, that's strange to me that if you are an experienced professional and you have a chance to use AI, especially if it's going to help you make significantly more money, I just don't know why you wouldn't, especially if it's going to help you make significantly more money. I just don't know why you wouldn't, especially for a technology company. But that's what he said, at least at his organization.

Pete Newsome:

So look, ai fluency is not a luxury anymore. I think that's what this data, or this article is telling us, in addition to the data from the Stanford study. You better get in the game. If you're not, and if you're an older worker, that's no excuse. I mean, you have to evolve, you have to stay current and relevant. That's always been the case. But, specifically with AI, you don't have a choice. It is here, it's not coming. It's here Now.

Pete Newsome:

There's a completely other side of the coin with this. I mean these articles on AI are just there's too many of them to keep up with, so I'm really trying to just grab the top ones each day. But in the HR Daily Advisor today, there's an article titled the Rise of FOBO why Workers Are Eyeing AI-Proof Careers. I mean, if there's an AI-proof career out there, I'm unaware of it. I think that's a naive view to take. That may be beside the point from this article, but look, ai is certainly not something you can ignore. So trying to AI-proof your career is a bit of a dangerous path to go down, in my opinion. But FOBO have you heard that one yet? Fear of becoming obsolete that's what this article is all about, and there were some interesting stats that I pulled out from it.

Pete Newsome:

One is that 21% of workers say they've lost a job or know someone who has, due to AI disruption. That's a big number. One out of five know someone who's lost a job or have lost themselves. I think that's a bit of a stretch. Probably. Maybe I mean it's coming, it's here, but one out of five, that's a lot.

Pete Newsome:

Another stat was that 37% of workers are actively learning AI skills to stay relevant. I mean, that seems low to me, right? So the first one seemed high, this one seems low. Only 37% should be 100%, and shame on you if you're not taking that upon yourself to learn AI because it's free. You're not taking that upon yourself to learn AI because it's free. Just get a chat GPT account, get on Grok, get on Gemini. I mean those are three of the big ones, but there are no shortage of ways and places to go teach yourself AI skills, to remain current with what's going on in the job market. And again, I don't feel for anyone who's not willing to help themselves in that regard.

Pete Newsome:

But 28% of the people surveyed said they plan to shift into careers they believe to be AI proof. I don't know what those are. Good luck, one out of four of you that we'll see how that plays out for you, but I wouldn't stick your head in the sand with AI, far from it. And then, finally, 18% fear displacement, even in roles that haven't yet been automated. That's low. I think we should all fear displacement if we're not taking steps to prevent that from happening. There is no question in my mind that I think all of these headlines today show that there are going to be big losers and big winners as AI becomes more prevalent across all industries and all jobs, all roles. I don't know any that won't be impacted. I'm sure you can come up with something obscure, but I would assume the worst, and then you won't be surprised and you can do something about it. Prevent you being on the bad side of this deal.

Pete Newsome:

So, whatever you're doing today, my advice, my strong advice to anyone who's in the workforce, is to figure out how AI can supplement what you're doing. It can improve what you're doing. How you can use it to be more effective, more efficient in your job. That, to me, is the key to staying relevant in all of this. And then, finally, for today, linkedin.

Pete Newsome:

Linkedin says that the number one trusted source for professionals isn't AI or search engine. It's their professional network. So, according to LinkedIn, 43% of professionals trust their own network for advice at work more than those relying on AI tools or search engines. Well, I hope those you're trusting aren't competing for the same job as you. Look, we all have people in our lives we trust, but I don't know if our network as a whole is more reliable than hard facts and data. I'd caution against that.

Pete Newsome:

But this article today also says that 64% of people surveyed say colleagues help them make decisions faster and with more confidence. Yeah, I buy into that. That makes sense. 51% of professionals say learning AI feels like another job. I guess, but it's learning a new job if what you're learning is a whole lot easier than what you're doing today. I mean, there's no one using AI that I'm aware of to make things more challenging and difficult. Quite the opposite. So don't overreact to it. Yes, it's happening, it's inevitable, but by paying attention, you'll be much better off.

Pete Newsome:

I know I keep saying that today a lot, but that is the message that's really important for everyone to understand. And then the survey said that 33% feel embarrassed admitting limited AI knowledge, and so they stay away from talking about it altogether. Well, that's not going to help, right? And for the last time today, I'll say that do your own research. The tools are free, and it's not just asking AI to teach you AI, although you could get on YouTube, right. There's a wealth of information available there and no shortage of people who will tell you everything you need to know, and it's all free. And then, finally, I'll even say LinkedIn is a good source for this. There's a lot of great people to follow on that. I typically don't promote LinkedIn a lot because LinkedIn does enough of that on their. I typically don't promote LinkedIn a lot because LinkedIn does enough of that on their own. They don't need any help from me, but there is some good that comes out of that site for sure. So take advantage of those free options that are out there so you don't have to be embarrassed or hesitant to talk about AI. Teach yourself.

Pete Newsome:

So those are your headlines, and closing today with your fun fact did you know the word salary originates from the Latin word sal, which means salt. Roman soldiers were sometimes paid in salt. Who knew that? I did not know that. It was a valuable commodity at the time, of course, and that has ultimately led to the phrase worth one's salt. So I love hearing where phrases come from, the ones we use just in our daily lives all the time and really don't think of it. But being paid in salt, are you worth your salt? Roman soldiers may or may not have been, but that's how they were paid a long, long time ago. So there you go Be worth your salt or make sure you're getting paid worth your salt. Whatever you're doing, have a good rest of your day. Thanks for listening. Please like, subscribe and offer any feedback or comments. Love to hear them and I'll talk to.