AI's Impact: Ad Industry Sheds Younger Workers
The advertising industry, a traditional launchpad for young talent, appears to be undergoing a significant demographic shift as artificial intelligence increasingly integrates into daily operations. Recent data suggests a concerning trend: a notable decline in the proportion of younger workers within advertising, public relations, and related services.
According to figures compiled by the U.S. Census Bureau and the Bureau of Labor Statistics, employees aged 20 to 24 constituted merely 6.5% of all jobs in these sectors last year. This marks the lowest share recorded since 2020 and represents a stark contrast to the pre-pandemic era. In 2019, this same demographic accounted for a more robust 10.5% of the advertising workforce. The downward trajectory has been particularly consistent since 2022, indicating a sustained reduction in the number of younger professionals, including recent college graduates, entering or remaining in the field.
This specific industry trend mirrors broader challenges confronting young, educated individuals across the entire job market. For the first time in decades, the unemployment rate among college graduates aged 22 to 27 has edged higher than the jobless levels for the general working population, as reported by the Federal Reserve Bank of New York. This reversal is particularly noteworthy given that, historically, young degree holders have consistently enjoyed lower unemployment rates than the broader public, a pattern that held true dating back to at least 1990, the earliest period for which comparable data is available.
While various factors undoubtedly contribute to these evolving employment dynamics, such as ongoing industry consolidation and pervasive economic uncertainty, the role of artificial intelligence in reshaping the landscape for entry-level positions cannot be overlooked, especially within fields like marketing and advertising. Further insights from employment data provider Live Data Technologies reinforce this perspective, revealing that staff-level positions at U.S. marketing and advertising companies have shrunk by more than 10% since January 2022. In contrast, manager and director roles have remained relatively stable over the identical period, suggesting that the impact of technological disruption is disproportionately affecting the foundational tiers of the industry.
The confluence of these trends paints a clear picture: as AI tools become more sophisticated and widely adopted, they are increasingly capable of automating tasks traditionally performed by junior staff, prompting a re-evaluation of hiring strategies and potentially narrowing the entry points for the next generation of advertising professionals.