AI adoption linked to reduced hiring of young workers

A study by researchers from HEC Paris, the Banque de France, and INSEAD found that companies using generative AI extensively have cut their hiring of young workers aged 21-29 by 17 to 25 percent compared to other companies in the same sector as of 2025. The research, titled IA générative : un gel des embauches de jeunes dans les métiers exposés, was published by the LIFT research institute in October 2026 and analyzed data from around 6,000 French private sector companies, with about 600 classified as heavy AI users.

Workforce size unchanged, but hiring patterns shifted

The study found that the overall size of the workforce in AI-intensive companies was not significantly different from that of other companies. However, hiring of younger workers was notably reduced, while hiring of older workers remained stable. This suggests that AI may be affecting specific roles rather than overall employment levels.

AI’s impact on specific job roles

Researchers found that the most AI-exposed professions hired about a third less than other professions within the same company. This discrepancy was attributed to AI's influence on particular job roles rather than broader economic factors. The decline in hiring for young workers began as early as 2023, even before AI adoption was formally declared in 2026.

Significant drop in hiring for young workers

The study estimated that about 75,000 full-time equivalent positions for young workers aged 21-29 went unfilled in a year compared to the 2022 baseline. This includes both the overall hiring decline and the specific impact on more exposed professions. The decline was also seen in workers aged 30-39, though to a lesser extent.

Varying impact across professions

The hiring decline was not uniform across all professions. For example, young software developers and engineers saw a 42% drop in hiring compared to 2022, while other professions experienced a decline of around 11%. The information technology sector contributed to this decline but accounted for less than a fifth of the overall difference.

Exposure index based on job tasks

Researchers created an exposure index using the ROME 4.0 job classification system to assess how likely AI is to replace or assist in various tasks. This index aligned with 2024 research but was not validated through human review or compared to other models.

Other factors may influence hiring trends

The study considered other factors like economic conditions, interest rates, and remote work as potential influences on hiring. It acknowledged that the hiring decline might be partly due to broader economic factors rather than AI alone.

Similar trends observed in other countries

Similar patterns were seen in Denmark and the United States, with a decline in hiring for young and highly educated workers in AI-exposed professions. In Norway, however, no significant hiring difference was found between AI-exposed and non-exposed professions.

Recommendations for employers

The study suggested that employers should redefine entry-level roles around tasks AI cannot perform well and maintain in-job training opportunities. It also recommended tracking hiring trends by age, contract type, and profession to detect early changes. An increase in apprenticeships for young workers in AI-exposed professions may help counterbalance the decline in direct hiring. Future data from the Base tous salariés for 2024 will help determine if the hiring freeze leads to long-term employment changes.