The Indicator from Planet Money

How AI is shrinking the job market for teens

9 min
Jan 9, 20263 months ago
Listen to Episode
Summary

A California high school student conducted economic research predicting a 27% decline in teen jobs by 2030 due to AI automation, with cashier positions facing a 54% drop. The episode explores which teen jobs are most vulnerable to AI displacement and discusses policy solutions like emphasizing critical thinking and entrepreneurship in education.

Insights
  • AI automation is disproportionately affecting entry-level teen employment, particularly in retail and food service sectors where teens traditionally gain work experience
  • Teen job displacement from AI differs by role complexity—jobs requiring interpersonal skills or sophisticated physical movements show greater resilience than routine tasks
  • Early work experience provides documented long-term benefits for youth including higher adult salaries and financial literacy, making AI job displacement a significant economic equity concern
  • Educational policy should shift focus from routine task mastery to critical thinking, digital literacy, and entrepreneurship to prepare youth for an AI-transformed labor market
  • Practical research by young people themselves can generate actionable insights and policy recommendations rather than purely dystopian analyses of technological disruption
Trends
AI-powered kiosks and self-checkout technology replacing cashier and retail counter positions at scaleAutomated cooking robots (fry stations, food preparation) entering restaurant operations including major chainsGen AI assistants displacing retail salesperson roles through customer service automationWidening skills gap between routine task jobs (vulnerable to automation) and interpersonal/complex physical jobs (automation-resistant)Youth workforce participation declining due to automation of traditional entry-level employment pathwaysEducational institutions lag in preparing students for AI-transformed labor marketsEntrepreneurship and digital literacy emerging as critical competencies for workforce resilienceDisproportionate impact on younger workers and those in service sector occupations
Companies
White Castle
Restaurant chain using automated fry station cooking robots that displace teen food preparation workers
Bureau of Labor Statistics
Government agency providing employment data and statistics used to identify top teen jobs and labor market trends
People
Carissa Tang
17-year-old Silicon Valley high school student who conducted economic research predicting 27% decline in teen jobs by...
George Geis
UCLA business school faculty member who mentored Carissa Tang's research project and praised her analytical skills
Waylon Wong
Co-host of The Indicator from Planet Money episode
Stephen Massaha
Co-host of The Indicator from Planet Money episode; announced new role as NPR personal finance reporter
Quotes
"I think an AI tsunami wave is going to come regardless, and it's going to drastically change our lives. I guess the question that we're trying to answer is not how to prevent this from happening, but what to do in the face of AI."
Carissa Tang
"My analysis predicts a 27 percent decline in teen jobs by 2030."
Carissa Tang
"Over the years, I've had probably over 100 research assistants, teaching assistants, most of whom are MBAs or PhDs. And I was struck by the fact that Carissa was coming back with work at a level that was as good as I've seen from much more developed and sophisticated students."
George Geis
"It definitely felt very applicable, but definitely a little bit fearful in the sense that, you know how are we going to learn all these important financial literacy or social skills or life skills that we get from a job"
Carissa Tang
"She was just not doing a doomsday type of paper. She was suggesting practical solutions, as well as reflecting a certain concern about her cohort and her age."
George Geis
Full Transcript
NPR. This is The Indicator from Planet Money. I'm Waylon Wong. And I'm Stephen Massaha. And it is Jobs Friday, the first one of the new year. The Bureau of Labor Statistics is getting back to its regular release schedule after the disruptions from the government shutdown. Today, the BLS published numbers for December. The U.S. economy added 50,000 jobs and the unemployment rate ticked down to 4.4 percent. But the BLS also revised their figures for October and November. The economy added 76,000 fewer jobs than previously reported. This shows that the labor market kept cooling at the end of 2025. Five. Looking at specific industries, food service jobs were up in December while retail jobs went down. These are both sectors where some people are getting supplanted by machines. Think fast food counter workers or cashiers. These are jobs you might associate with the economy's youngest workers, teenagers. So what does the future of teen employment look like? One California high school student has crunched the numbers. I think an AI tsunami wave is going to come regardless, and it's going to drastically change our lives. I guess the question that we're trying to answer is not how to prevent this from happening, but what to do in the face of AI. Today on the show, this enterprising teenager explains her economic research project and offers her ideas for how educators can better prepare young people for the job market. Carissa Tang's story starts with boba. Oh, bubble tea, right? Yes. Are you a big bubble tea guy? I am actually abstained of all caffeine drinks. I don't want the caffeine headaches. Oh, you are a monk, Stephen. Well, I love tarot, and Carissa's go-to is matcha. What level ice do you do? I do less ice because I want them to fill it up with more with the drink. And then I do 20% sugar. Keeping it healthy Keeping it healthy Yeah yeah Carissa is 17 years old and lives in Silicon Valley She a senior in high school And one of her aunts actually owns a boba tea shop So many of my classmates asked if I can hook them up with my aunt for a summer job. But surprisingly, she wasn't in need of any employees. And this really piqued my interest because I thought, you know, it shouldn't be too hard to get a summer job. Now, maybe your average teenager would have said, that's interesting and, you know, moved on. But Carissa, she is not average. For one thing, she and her brother designed a strategy board game called Booted while they were sick with COVID in 2022. They actually got the game manufactured and you could buy it right now online. And Carissa started volunteering as a research assistant by cold emailing George Geis. He's on the faculty at UCLA's business school. Most of us on the faculty get approached maybe at least once a month by students who want to do something with us in work. But Carissa stood out. For example, Carissa described herself as a rising junior, which is a pretty clever way to say sophomore. And her resume impressed George, so he took her on. Over the years, I've had probably over 100 research assistants, teaching assistants, most of whom are MBAs or PhDs. And I was struck by the fact that Carissa was coming back with work at a level that was as good as I've seen from much more developed and sophisticated students as far as their educational level. George also encouraged Carissa to pursue her own research project. And this brings us back to her aunt not hiring any teens for her boba shop. And I learned that it's because AI-powered kiosks were replacing the counter roles at many tea shops. So that takes out, what, two to three employees per shop. And then I looked into a bit more and saw that AI was taking over many teen jobs. For example, AI-powered self-checkout is taking over many cashier jobs, or Gen AI assistants are taking over many retail salesperson's jobs. And that launched me into this research paper. Carissa set out to quantify the impact of AI on teenage jobs. And here's what she did. First, she looked up the top 10 most popular jobs for workers ages 16 to 19 based on BLS data. The number one job is cashier Around 13 of teens are in this role That was my teenage job as well Number two is restaurant server Number three is fast food counter worker After Carissa compiled the list of top 10 jobs she researched AI technology that could displace those jobs Take restaurant cooks, for example. About 5% of working teens are cooks, according to the BLS. And Carissa learned about a cooking robot that's used by restaurants like White Castle. The robot is an automated fry station that can make french fries and chicken tenders. I would look at the current amount of units deployed for cooking robots and then the growth rate for them. And then from there, determine the number of units expected to be deployed in five years. And then estimated the number of employees that each unit of AI tech will impact. And then the total number of employees displaced and the total number of teen employees displaced. Carissa repeated these steps for all of the top teen jobs, including cashiers, fast food counter workers, and customer service representatives. If there's one headline to cap all of it off, it'd be that my analysis predicts a 27 percent decline in teen jobs by 2030. A 27 percent decline. It's a pretty dramatic effect. Carissa calculated that the biggest loss would be in cashier jobs. That would see a 54 percent drop as retailers replace human cashiers with digital kiosks and self-checkout stations. This isn't just affecting teens, right? I mean, like you see middle-aged and older workers in these jobs, too. For sure. Although if you look at the median age for cashiers in the U.S., it's in the 20s. There were some bright spots in Carissa's analysis. Like some teen jobs look to be safe from AI displacement in the near future. These include restaurant hosts and cooks. Carissa says she believes this is because these jobs require interpersonal skills or more sophisticated physical movements. So like those fry robots you talked about, Stephen, they don't pose a huge threat in the short term. Chris's analysis determined that the impact on teen cooks would be minimal, at least before 2030. And one of her first jobs is probably safe, too, coaching basketball at her old middle school. But you know, an overall 27% decline in teen jobs, that is a significant result. A recent review of research by the OECD found that kids who got work experience in school reap benefits as adults, including higher salaries. It definitely felt very applicable, but definitely a little bit fearful in the sense that, you know how are we going to learn all these important financial literacy or social skills or life skills that we get from a job Carissa is far from an AI Luddite She used that technology to generate posters for an event she planned at her church And she uses ChatGPT as a study aid at school. In my world history class, we would have to remember these times and dates and people and places from our history notes. And maybe I'm just a little bit lazy, but it was kind of a lot for me to look through these pages upon pages of notes. So what I did instead was I would take photos of all of them, upload it to ChatGPT, and I'd have ChatGPT create an imaginative, creative story for me to remember all these terms. And on the way to school, I'd just plug in my headphones and listen to ChatGPT read the story aloud. And that would be one way to help me study for the exam. It is very self-effacing of her to say she's a little bit lazy because she did this whole economic research project. And her 20-page paper ends with policy ideas. For example, it says educators should emphasize critical thinking skills and digital literacy over routine tasks. And that schools should make entrepreneurship part of their curriculum. She thinks this will teach students how to adapt to all these economic changes. George Geis at UCLA says he was impressed with Carissa's analytical skills and creativity. She was just not doing a doomsday type of paper. She was suggesting practical solutions, as well as reflecting a certain concern about her cohort and her age. So she's not a self-absorbed teenager in the classical sense. She's very much looking outward. Now Carissa is looking forward. She's working on submitting her paper to economic journals, and she'll be graduating high school this year and wants to study business or economics in college. George wrote her a glowing recommendation letter. And while we're on the subject of jobs, Stephen, you have a new one. Yes, I do. I will be starting my new role as NPR's personal finance reporter on Monday. Big congrats and special thanks to the Gulf States newsroom for letting us borrow you for these past few months. This episode was produced by Corey Bridges with engineering by Robert Rodriguez. It was fact-checked by Sierra Juarez. Kate Kincannon edits the show, and The Indicator is a production of NPR.