Impact of AI on Employment for Young Workers
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 11 2026
0mins
Source: Yahoo Finance
- Youth Employment Decline: As of April, employment among 22 to 25-year-olds in AI-exposed occupations fell by 4.2%, compared to a 1.7% decline for peers in less-exposed fields, indicating a significant impact of AI on early-career workers.
- Industry Disparities: While overall employment in AI-exposed jobs dropped by only 0.2%, young workers in software development saw a notable decline post-ChatGPT, highlighting varying impacts of technology across different professions.
- Need for Skill Enhancement: ADP's chief economist emphasized that young workers must upskill to take on more complex roles, stressing that transitioning from automation to augmentation is crucial for career advancement.
- Call to Action: The data suggests that young workers should proactively learn and seek guidance from experienced colleagues to advance quickly in their careers and avoid marginalization due to technological changes.
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Analyst Views on ADP
Wall Street analysts forecast ADP stock price to rise
12 Analyst Rating
2 Buy
7 Hold
3 Sell
Hold
Current: 218.760
Low
230.00
Averages
276.83
High
332.00
Current: 218.760
Low
230.00
Averages
276.83
High
332.00
About ADP
Automatic Data Processing, Inc. is a provider of cloud-based human resources management, payroll processing, and professional employer organization services. Its segments include Employer Services and Professional Employer Organization (PEO). Its Employer Services segment serves clients ranging from single-employee small businesses to large enterprises with tens of thousands of employees around the world, offering a range of technology-based HCM solutions, including its cloud-based platforms, and human resource outsourcing (HRO) (other than PEO) solutions. Its offerings include payroll services, benefits administration, talent management, HR management, workforce management, compliance services, insurance services and others. Its PEO business, called ADP TotalSource, provides clients with guidance, technology, comprehensive employee benefits, risk management, safety, and workers' compensation programs. Its compensation management software supports the compensation planning needs.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Global Workers Feel Job Insecurity Amid AI Adoption
- Job Insecurity: ADP's survey reveals that only 22% of global workers feel their jobs are secure, with Japan at a mere 5%, indicating a significant lack of confidence that could impact retention strategies for companies despite low global unemployment rates.
- Prevalence of Unpaid Work: The survey found that 62% of workers report working up to five unpaid hours weekly, with 50% of upper management indicating at least six unpaid hours, suggesting that this trend may lead to decreased job satisfaction and overall productivity for businesses.
- AI Usage and Productivity: While the adoption of AI tools has increased employee engagement and reduced stress, ADP found that daily AI users are more likely to feel less productive, indicating that the integration of technology may not be enhancing efficiency as expected, necessitating a focus on employee perceptions.
- Engagement Challenges: Only 19% of workers reported being fully engaged in 2025, with China at just 11%, highlighting significant challenges for companies in improving employee engagement, where investing in skills and building trust are crucial for enhancing this metric.
See More
U.S. Private Sector Job Growth Slows Down
- Job Growth Data: For the four weeks ending May 30, 2026, U.S. private employers added an average of 25,500 jobs per week, indicating a slowdown in employment growth that reflects the fragility of economic recovery.
- Four-Week Moving Average: The NER Pulse data shows a decrease of 3,500 jobs from the previous week, suggesting a weakening labor market that could impact consumer confidence and spending.
- Data Release Frequency: The NER Pulse is published every Tuesday at 8:15 a.m. ET, providing estimates of week-over-week employment changes based on ADP's high-frequency data, ensuring timeliness and accuracy to aid policymakers and businesses in making informed decisions.
- ADP Research Mission: ADP Research aims to enhance work productivity through data-driven insights, with over 1.1 million clients relying on its innovative solutions to tackle HR and payroll challenges, underscoring its significance in the global market.
See More
Impact of AI on Employment for Young Workers
- Youth Employment Decline: As of April, employment among 22 to 25-year-olds in AI-exposed occupations fell by 4.2%, compared to a 1.7% decline for peers in less-exposed fields, indicating a significant impact of AI on early-career workers.
- Industry Disparities: While overall employment in AI-exposed jobs dropped by only 0.2%, young workers in software development saw a notable decline post-ChatGPT, highlighting varying impacts of technology across different professions.
- Need for Skill Enhancement: ADP's chief economist emphasized that young workers must upskill to take on more complex roles, stressing that transitioning from automation to augmentation is crucial for career advancement.
- Call to Action: The data suggests that young workers should proactively learn and seek guidance from experienced colleagues to advance quickly in their careers and avoid marginalization due to technological changes.
See More
U.S. Private Sector Job Growth Slows Down
- Job Growth Trend: For the four weeks ending May 23, 2026, U.S. private employers added an average of 29,000 jobs per week, indicating a slowdown in job growth for the third consecutive week, reflecting signs of economic recovery fatigue.
- Data Adjustment Note: These figures are preliminary and may change as new data is incorporated, highlighting the importance of accurate estimates for real-time employment trends.
- Release Frequency and Timing: The NER Pulse is published every Tuesday at 8:15 a.m. ET, providing week-over-week employment change estimates based on a four-week moving average, ensuring timeliness and accuracy of the data.
- ADP Research Mission: ADP Research aims to enhance work productivity through data-driven discovery, assisting companies, workers, and policymakers in making informed decisions that impact workplaces globally.
See More
Signs of Stability in the U.S. Job Market Ahead of Jobs Report
- Job Growth Expectations: Economists surveyed by Bloomberg predict that the U.S. will add 85,000 jobs in May while the unemployment rate remains steady at 4.3%, marking three consecutive months of job gains, indicating some stability in the labor market.
- Strong Private Sector Performance: ADP reported that private employers added 122,000 jobs in May, with hiring occurring across eight of the ten supersectors, suggesting that despite market fluctuations, certain industries are actively recruiting.
- Increase in Job Openings: Job openings surged to 7.62 million in April, a significant rise from March, although hiring declined in April; the increase was particularly concentrated in the professional and business services sector, reflecting ongoing demand for specific skills.
- Cautious Hiring Environment: The Federal Reserve's Beige Book noted little to no change in employment across 11 districts, with hiring focused on critical roles or attrition replacements, indicating that economic uncertainty is making workers reluctant to change jobs, leading to a cautious hiring landscape.
See More
ADP Stock Breaks Out from Potential Bottom
- Stock Trend Analysis: ADP's stock is breaking out from a potential inverse head and shoulders pattern, showing early signs of bottom formation as it steadily recovers from its April low, despite a decline from the June 2025 peak of 330.
- Software Sector Comparison: ADP's reliance on large-scale software operations aligns its trajectory with the IGV software ETF, which has recently surged to 104 after several months of bottoming, suggesting ADP may experience a similar rebound.
- Industry ETF Performance: As a component of the XLI industrial ETF, ADP has lagged, even as XLI approaches its historical highs from February; however, the similarity between ADP's bottoming pattern and XLI's cup and handle formation indicates potential for upward movement.
- Long-Term Trend Support: ADP's stock has bounced near a long-term uptrend line drawn from the 2011 lows, historically showing significant rebounds after corrections of 20% to 44% at this trendline, suggesting a strong possibility of returning to 2025 highs based on current support indicators.
See More
Global Workers Feel Job Insecurity Amid AI Adoption
- Job Insecurity: ADP's survey reveals that only 22% of global workers feel their jobs are secure, with Japan at a mere 5%, indicating a significant lack of confidence that could impact retention strategies for companies despite low global unemployment rates.
- Prevalence of Unpaid Work: The survey found that 62% of workers report working up to five unpaid hours weekly, with 50% of upper management indicating at least six unpaid hours, suggesting that this trend may lead to decreased job satisfaction and overall productivity for businesses.
- AI Usage and Productivity: While the adoption of AI tools has increased employee engagement and reduced stress, ADP found that daily AI users are more likely to feel less productive, indicating that the integration of technology may not be enhancing efficiency as expected, necessitating a focus on employee perceptions.
- Engagement Challenges: Only 19% of workers reported being fully engaged in 2025, with China at just 11%, highlighting significant challenges for companies in improving employee engagement, where investing in skills and building trust are crucial for enhancing this metric.
See More
U.S. Private Sector Job Growth Slows Down
- Job Growth Data: For the four weeks ending May 30, 2026, U.S. private employers added an average of 25,500 jobs per week, indicating a slowdown in employment growth that reflects the fragility of economic recovery.
- Four-Week Moving Average: The NER Pulse data shows a decrease of 3,500 jobs from the previous week, suggesting a weakening labor market that could impact consumer confidence and spending.
- Data Release Frequency: The NER Pulse is published every Tuesday at 8:15 a.m. ET, providing estimates of week-over-week employment changes based on ADP's high-frequency data, ensuring timeliness and accuracy to aid policymakers and businesses in making informed decisions.
- ADP Research Mission: ADP Research aims to enhance work productivity through data-driven insights, with over 1.1 million clients relying on its innovative solutions to tackle HR and payroll challenges, underscoring its significance in the global market.
See More
Impact of AI on Employment for Young Workers
- Youth Employment Decline: As of April, employment among 22 to 25-year-olds in AI-exposed occupations fell by 4.2%, compared to a 1.7% decline for peers in less-exposed fields, indicating a significant impact of AI on early-career workers.
- Industry Disparities: While overall employment in AI-exposed jobs dropped by only 0.2%, young workers in software development saw a notable decline post-ChatGPT, highlighting varying impacts of technology across different professions.
- Need for Skill Enhancement: ADP's chief economist emphasized that young workers must upskill to take on more complex roles, stressing that transitioning from automation to augmentation is crucial for career advancement.
- Call to Action: The data suggests that young workers should proactively learn and seek guidance from experienced colleagues to advance quickly in their careers and avoid marginalization due to technological changes.
See More
U.S. Private Sector Job Growth Slows Down
- Job Growth Trend: For the four weeks ending May 23, 2026, U.S. private employers added an average of 29,000 jobs per week, indicating a slowdown in job growth for the third consecutive week, reflecting signs of economic recovery fatigue.
- Data Adjustment Note: These figures are preliminary and may change as new data is incorporated, highlighting the importance of accurate estimates for real-time employment trends.
- Release Frequency and Timing: The NER Pulse is published every Tuesday at 8:15 a.m. ET, providing week-over-week employment change estimates based on a four-week moving average, ensuring timeliness and accuracy of the data.
- ADP Research Mission: ADP Research aims to enhance work productivity through data-driven discovery, assisting companies, workers, and policymakers in making informed decisions that impact workplaces globally.
See More
Signs of Stability in the U.S. Job Market Ahead of Jobs Report
- Job Growth Expectations: Economists surveyed by Bloomberg predict that the U.S. will add 85,000 jobs in May while the unemployment rate remains steady at 4.3%, marking three consecutive months of job gains, indicating some stability in the labor market.
- Strong Private Sector Performance: ADP reported that private employers added 122,000 jobs in May, with hiring occurring across eight of the ten supersectors, suggesting that despite market fluctuations, certain industries are actively recruiting.
- Increase in Job Openings: Job openings surged to 7.62 million in April, a significant rise from March, although hiring declined in April; the increase was particularly concentrated in the professional and business services sector, reflecting ongoing demand for specific skills.
- Cautious Hiring Environment: The Federal Reserve's Beige Book noted little to no change in employment across 11 districts, with hiring focused on critical roles or attrition replacements, indicating that economic uncertainty is making workers reluctant to change jobs, leading to a cautious hiring landscape.
See More
ADP Stock Breaks Out from Potential Bottom
- Stock Trend Analysis: ADP's stock is breaking out from a potential inverse head and shoulders pattern, showing early signs of bottom formation as it steadily recovers from its April low, despite a decline from the June 2025 peak of 330.
- Software Sector Comparison: ADP's reliance on large-scale software operations aligns its trajectory with the IGV software ETF, which has recently surged to 104 after several months of bottoming, suggesting ADP may experience a similar rebound.
- Industry ETF Performance: As a component of the XLI industrial ETF, ADP has lagged, even as XLI approaches its historical highs from February; however, the similarity between ADP's bottoming pattern and XLI's cup and handle formation indicates potential for upward movement.
- Long-Term Trend Support: ADP's stock has bounced near a long-term uptrend line drawn from the 2011 lows, historically showing significant rebounds after corrections of 20% to 44% at this trendline, suggesting a strong possibility of returning to 2025 highs based on current support indicators.
See More
