economy
WFH is a bigger driver of entry-level job woes than AI, researchers say
Researchers at the London School of Economics analyzed 650 million hiring records and found WFH may be hurting junior hiring more than AI.
TL;DR
- Researchers suggest remote work, not AI, is a stronger predictor of declining entry-level hiring.
- Remote work can increase the cost of supervising and training junior employees, potentially reducing companies' incentive to hire them.
- Jobs most exposed to AI are often also the jobs most likely to be done remotely, leading to potential confusion in previous studies.
- When controlling for both factors, the impact of AI on junior hiring attenuated significantly, while the remote work effect remained robust.
- By 2025, occupations with high remote-work exposure are estimated to see a larger decline in junior hiring.
- AI is still reshaping entry-level work by automating tasks and pushing some young workers into higher-level responsibilities earlier.