Drop in permanent hires for young workers in AI-intensive companies
In brief
- French companies using AI intensively reduced permanent hires of young workers by 17 to 25 % in 2025.
- This decline does not come with a net reduction in overall headcount, according to the researchers.
- Authors recommend rethinking entry-level positions and strengthening on-the-job training.
A joint study by HEC Paris, the Banque de France and INSEAD shows that around 600 French companies using AI intensively reduced their permanent hires of 21-29 year olds by 17 to 25 % in 2025, compared with other companies in their sector. According to the economists, this decline does not come with a reduction in overall headcount.
The researchers cross-referenced employers' social declarations with sectoral data, covering nearly 6,000 companies, including 600 intensive AI users. Hiring gaps appeared as early as 2023 and were confirmed in 2025, with a particularly sharp decline in professions most exposed to automation. The authors point out that this trend cannot be attributed solely to AI, also citing cyclical factors such as higher interest rates.
The study highlights an "asymmetric freeze" in hiring, targeting mainly young beginners without significantly affecting total headcount. The authors recommend that companies rethink entry-level positions and strengthen on-the-job training to limit the impact on young people's professional integration.
What it changes for you
- Human ResourcesHR departments must anticipate a decline in entry-level permanent hires in AI-exposed sectors, without a net reduction in overall headcount.
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