ChatGPT wiped out entry-level tech jobs

Within months of OpenAI's December 2022 ChatGPT release, hiring for workers ages 22 to 24 in AI-exposed industries dropped sharply. Employment in the most AI-exposed fifth of industries fell 12% over the next ten quarters.

Computer science grads hit hardest

AI-exposed industries cluster around software and IT work, the exact fields computer science majors are trained for. These graduates faced the steepest employment and earnings declines after ChatGPT's launch.

Earnings dropped like a recession hit

Computer science graduates saw their initial earnings fall 13% after ChatGPT's release, roughly equivalent to graduating into a severe recession. Yet the broader economy stayed strong, showing the impact was AI-specific.

They're taking retail and restaurant jobs

Half the earnings loss came from lower wages in tech roles. The other half came from switching to lower-wage sectors like restaurants and retail. Graduates apply for software jobs that no longer exist and settle for grocery store work instead.

Students took three years to react

The job market shifted within months of ChatGPT's release, but computer science enrollment didn't drop noticeably until spring 2026. By then, 42% of bachelor's degree students had reconsidered their major because of AI.

“about 42% of bachelor's degree students had reconsidered their major because of AI”

Underemployment is now the norm

Recent college graduates face a 42% underemployment rate as of mid-2026. Over half are working in jobs that don't require a degree, and 45% remain stuck in those roles a decade later.