Generative AI: the first changes in the labour market are affecting young people

Post No. 463.Since the end of 2022, permanent contract hires among young people have fallen more markedly in occupations where tasks can most easily be performed or assisted by generative AI. Contract terminations are also declining, while the total employment levels of firms reporting intensive AI use do not differ significantly from those of other firms. The first observed changes are therefore reflected more in employee hires and separations than in a discernible decline in the total number of employees.