AI Hits Entry-Level Jobs for CS and Accounting Grads

The rise of generative artificial intelligence has created a particularly harsh entry into the workforce for recent college graduates in technology and related fields. According to new data, those who majored in computer science, accounting, and journalism are experiencing job market conditions that mirror the economic downturn of a major recession.

A recent working paper by economists affiliated with the U.S. Census Bureau reveals that this shift began immediately after ChatGPT became widely available in late 2022. The study indicates that for these specific majors, the likelihood of securing initial employment dropped by five percentage points, while starting salaries fell by 13 percent compared to the pre-AI era.

Recession-like impacts on starting salaries

The financial hit for new graduates in AI-exposed roles is not just about finding fewer jobs; it is also about earning less once hired. The researchers found that roughly half of the earnings decline comes from lower wages within the same industries. The other half results from graduates being funneled into lower-paying sectors, such as retail and restaurants, rather than their intended professional fields.

This pattern of divergence in employment and earnings started right away. For the most affected groups, the drop in initial income was significant enough to be statistically comparable to the losses typically seen when graduates enter the labor market during a severe economic contraction. This suggests that the disruption is immediate and measurable for the current cohort of new workers.

Fields most vulnerable to automation

The study categorized college majors into ten groups based on their exposure to AI tools. Computer science, engineering, and accounting topped the list of fields most vulnerable to disruption. In contrast, majors in nursing and education were identified as having the lowest exposure, suggesting that roles requiring physical presence or complex human interaction remain less susceptible to immediate displacement.

The distinction matters because it highlights that the impact is not uniform across all degrees. Instead, it targets roles heavily reliant on coding, data analysis, and written communication. This creates a widening gap between graduates in AI-resistant fields and those in AI-exposed fields, potentially reshaping the value of different educational pathways in the job market.

Long-term recovery remains uncertain

While the immediate costs are clear, the long-term trajectory is still debated. The researchers note that the effects tend to lessen as graduates gain more experience and move further from their initial job entry. However, for those in the most exposed categories, the financial penalty remains substantial even after this initial adjustment period.

As reported by Inside Higher Ed, the ultimate outcome depends on how workers, employers, and colleges adapt to these technological shifts. There is currently insufficient data to determine if these workers will fully recover their earning potential over time. Understanding how entry-level career paths are being reshaped is crucial for assessing the broader distributional consequences of AI on the workforce.