AI impacts labor market through job scams and reduced junior hiring

Recent data and analysis highlight two distinct ways artificial intelligence is impacting the labor market: through increased fraudulent activity and shifts in entry-level hiring patterns.

Scammers are increasingly utilizing generative AI to facilitate fake job offers. Common tactics include impersonating major brands like Amazon or government agencies such as the USPS to steal sensitive information. Other schemes involve repackaging or reselling scams, where victims are tricked into receiving and rerouting goods to hide the origins of stolen credit card purchases.

Simultaneously, a revised analysis from the Stanford Digital Economy Lab indicates an employment shock for young professionals. In the United States, employment among 22-to-25-year-olds in occupations highly exposed to generative AI was 19% lower than it would have been if it had kept pace with less-exposed occupations through June 2026. This trend is driven by companies hiring fewer junior employees rather than mass layoffs of experienced staff, raising concerns about the future pipeline of senior professionals in fields like law and coding.