Gen Zers are paying the price for lack of experience as AI takes their jobs. Older workers are safe—for now, Dallas Fed warns

Core Insights - The Federal Reserve Bank of Dallas research indicates that while Gen Z workers face significant unemployment due to AI, older and more experienced workers are thriving in the job market [1][2]. AI Impact on Employment - AI adoption is not merely about job automation; it enhances productivity for experienced workers by allowing them to delegate tasks to AI, enabling a focus on higher-value work [2]. - Wage data analysis since fall 2022 shows that AI's impact varies across industries, particularly affecting entry-level jobs that require codifiable knowledge, which AI can automate [3]. Employment Trends - Globally, AI job disruption is most pronounced among young workers in tech and finance, with a reported 20% drop in employment for younger workers from 2023 to 2025, while "prime-age" workers (ages 30 to 59) saw a 12% increase [4]. - In the U.S., employment in AI-exposed sectors like law, finance, and education has declined by 1% since 2021, with the most significant impact on workers aged 22 to 25, while older workers' employment has increased [5]. Organizational Changes - Companies are reorganizing their structures due to AI; for instance, the title "software engineer" may become obsolete by the end of 2026 as tasks are increasingly automated [6]. - The adoption of AI for entry-level tasks varies among tech companies; IBM is expanding its entry-level job offerings, including roles traditionally thought to be at risk from AI [8].