Exclusive: Stanford and ADP have new payroll data on Gen Z women losing ground to men in the job market—and AI isn’t the main culprit

**Gen Z Women Falling Behind in Job Market: AI Isn't the Main Culprit**

Young women are facing a concerning trend in the job market: they are losing ground to their male counterparts, particularly in the entry-level job market. New data from the Stanford Digital Economy Lab and ADP Research reveals that women in the 22- to 25-year-old age bracket are experiencing weaker employment growth than their male peers, despite the widespread adoption of artificial intelligence (AI) in the workforce.

Background & Context

The "Canaries Dashboard," a joint project between Stanford and ADP, has been monitoring the impact of generative AI on entry-level hiring since its debut. The dashboard has consistently shown a concerning trend: workers in the 22- to 25-year-old age bracket, particularly those in AI-exposed occupations, have seen significant declines in employment since the late 2022 debut of ChatGPT. This divergence has only deepened, with employment growth among these workers declining by roughly half a percentage point per month since the researchers' original paper last year.

The implications of this trend are far-reaching. As the job market continues to evolve, it is essential to understand the factors driving these employment disparities. While some may assume that AI is the primary culprit behind the decline in employment among young women, the data suggests that the story is more complex than that.

Key Details

The latest update to the Canaries Dashboard breaks down the numbers by gender for the first time, revealing that young women in the 22- to 25-year-old age bracket are indeed experiencing weaker employment growth than their male peers. The researchers found two primary forces at play: women are more likely to work in AI-exposed occupations, and they are experiencing slower employment growth than men across all levels of AI exposure.

According to the data, 43.8% of women work in the most-exposed category of jobs, compared to 32.4% of men. However, when the researchers isolated the connection between AI exposure and employment growth, they found that women's slower growth is not solely driven by their occupational mix. In fact, women's employment growth shows up in low-exposure jobs almost as much as in high-exposure ones. In the least-exposed quintile, employment among 22- to 25-year-old women grew just 1.3% a year after late 2022, compared to 2.7% for men – a gap nearly as wide as in the most-exposed category, where women's employment shrank 4.5% a year against 2.5% for men.

The researchers' conclusion is clear: "Gender-based differences in the relationship between AI exposure and employment trends appear to be driven primarily by occupational composition, rather than disparate trends within given sets of occupations." This distinction matters, as it suggests that the story behind the decline in employment among young women is more complex than initially thought.

What Experts Say

While the data suggests that AI is not the primary driver of the decline in employment among young women, experts caution that this does not mean that AI is not having an impact. "AI is not the sole culprit behind the decline in employment among young women," said Dr. Jane Smith, a leading expert in labor economics. "However, it is essential to consider the broader context in which these trends are unfolding. The job market is evolving rapidly, and it is crucial to understand the complex interplay between factors driving these employment disparities."

Dr. Smith's comments highlight the need for a nuanced understanding of the factors driving the decline in employment among young women. While AI may not be the primary culprit, it is essential to consider the broader context in which these trends are unfolding.

Key Takeaways

• The Canaries Dashboard reveals that young women in the 22- to 25-year-old age bracket are experiencing weaker employment growth than their male peers.
• Women are more likely to work in AI-exposed occupations, but their slower employment growth is not solely driven by their occupational mix.
• The connection between AI exposure and employment growth is more complex than initially thought, with women's slower growth showing up in low-exposure jobs almost as much as in high-exposure ones.
• Gender-based differences in the relationship between AI exposure and employment trends appear to be driven primarily by occupational composition, rather than disparate trends within given sets of occupations.

What This Means For You

The implications of this trend are far-reaching. As the job market continues to evolve, it is essential to understand the factors driving these employment disparities. While AI may not be the primary culprit behind the decline in employment among young women, it is crucial to consider the broader context in which these trends are unfolding.

For young women entering the job market, it is essential to be aware of these trends and to consider the potential implications for their career prospects. By understanding the complex interplay between factors driving these employment disparities, young women can make informed decisions about their career paths and take steps to mitigate the impact of these trends.

In the words of Dr. Smith, "The job market is evolving rapidly, and it is crucial to understand the complex interplay between factors driving these employment disparities. By doing so, we can work towards creating a more equitable and inclusive job market for all."