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AI: Jobs, Power & Money
22OCT

Banque de France finds AI hiring gap

4 min read
16:14UTC

Banque de France economists found permanent hiring of under-30s in the most AI-exposed jobs 28% below its November 2022 level by March 2026, against 8% in the least exposed.

EconomicAssessed
Key takeaway

Young people in France are hired far less often into the jobs AI can most readily do.

Economists at the Banque de France reported on 8 October that permanent-contract hiring of 21-to-29-year-olds in the most AI-exposed fifth of occupations was about 28% below its November 2022 level by March 2026, against 8% in the least exposed fifth⁠1⁠2. Exposure here means how readily generative AI tools can perform an occupation's tasks. At the start of 2026, hiring of young software developers and IT (information technology) engineers was 42% below November 2022, against 11% in less exposed occupations⁠3. The gap narrows for workers in their thirties and forties and nearly vanishes from 50.

The study, published on the Bank's blog under the authors' own names, counts declared CDI (contrat à durée indéterminée, France's open-ended employment contract) hires and terminations at about 6,000 firms in the Bank's business survey from January 2019, matched to an occupational exposure index for generative AI. November 2022, the base month, is when ChatGPT launched.

The Bank of Canada found the same shape in August, a job-finding gap that widened while dismissals barely moved. France finds it in declared hires at surveyed firms rather than a household survey. One difference: terminations of young exposed workers fell too, by 23% against 6%⁠4. Fewer under-30s in exposed jobs are hired, and fewer are let go, than in 2022; that matters because moving between jobs is usually how young workers win pay rises.

Danmarks Nationalbank reported in September that Danish firms adopting AI in 2023 had employment growth 11% lower than non-adopters two years on⁠5. A euro-area survey found AI use concentrated among graduates.

The French authors name other explanations. The European Central Bank (ECB) raised rates from July 2022 to September 2023, inside the same window, and the most exposed occupations are also the easiest to do from home, so post-pandemic remote hiring could mimic the pattern. Neither obviously explains why the gap fades with age.

Deep Analysis

In plain English

France's central bank, the Banque de France, studied how many young people get permanent jobs in different types of work. It compared jobs where AI tools can do much of the work, such as software development, with jobs where they cannot. Since late 2022, when AI chatbots became widely available, firms have hired far fewer under-30s on permanent contracts into the first group. Older workers in the same jobs are barely affected. The effect is on getting in, not on being pushed out.

Deep Analysis
Root Causes

France's employment protection makes a permanent contract a long bet. A CDI is costly to end outside a negotiated rupture conventionnelle, so a firm unsure which tasks generative AI will absorb has a reason to delay the hire rather than make it and reverse it later.

The study counts only CDI flows. Young French workers mostly enter through fixed-term contracts and, since the 2018 apprenticeship reform and the hiring subsidies that followed, through apprenticeships, so part of the missing CDI hiring may sit in those channels instead of vanishing.

The gap fading with age points to task content. Junior roles in coding, drafting and analysis are built from the routine tasks generative tools perform best, while senior roles in the same occupations carry client contact and sign-off that the tools do not replace.

What could happen next?
  • Consequence

    Young French entrants to AI-exposed occupations may shift towards fixed-term contracts and apprenticeships while permanent hiring stays depressed.

    Short term · Assessed
  • Risk

    A smaller intake of junior software developers and IT engineers could leave French firms short of mid-career specialists by the early 2030s.

    Long term · Suggested
  • Precedent

    A third central bank, after Canada and Denmark, has placed the AI labour effect in hiring flows, which gives other statistics offices a template to test the same mechanism.

    Medium term · Assessed
First Reported In

Update #21 · AI marks French hiring and Accenture's 10-K

Banque de France· 22 Oct 2026
Read original →
Different Perspectives
TSMC
TSMC
The chipmaker raised its 2026 revenue growth forecast to about 44% on 15 October while holding capital spending at $60-64bn. High-performance computing, mostly AI data-centre chips, made up 68% of quarterly revenue, so demand for the hardware behind automation is still rising.
South Korean government
South Korean government
Its statistics office published the first youth figures on the 15-to-34 band set by a revised law, showing a fall of 98,000 against 147,000 on the old band. Including people in their early thirties, whose employment rose, makes the official youth decline look gentler.
Office for National Statistics
Office for National Statistics
The ONS put UK vacancies at 691,000 for July to September and professional, scientific and technical vacancies 11.6% lower on the year. In September it had shown the same sector still adding jobs, so the fall appears in adverts before it reaches headcount.
Chinese government
Chinese government
Officials told a State Council Information Office briefing on 10 October that 10.52 million new urban jobs had been created by September, 87.7% of the annual target. Official figures show investment falling overall but rising in networks, data services and robot output, with urban unemployment at 5.2%.
Tharman Shanmugaratnam
Tharman Shanmugaratnam
Singapore's President, co-chair of the World Bank Jobs Council, urged governments at the Bangkok meetings to make crisis-era youth employment support a standing policy tool. That treats young workers' AI exposure as a lasting budget line rather than a shock to ride out.
Srini Pallia, Wipro
Srini Pallia, Wipro
Wipro's chief executive called AI a long-term growth driver as the company cut 6,716 staff on flat revenue. HCLTech and TCS added staff in the same quarter, so Wipro's cut sits beside its own weak revenue rather than an industry-wide fall.

Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Editorial standards.