AI isn’t firing young workers. It’s not hiring them.
California just restricted AI-only firing decisions. The quieter risk is fewer entry-level openings.
The dots
- On September 30, Governor Newsom signed SB 947, the “No Robo Bosses Act.” From July 1, 2027, a California employer can’t let an automated system alone fire or discipline someone. A human has to back the decision with reviews and personnel files, and the worker gets written notice. Newsom vetoed an earlier version in October 2025. Source.
- He signed SB 951 the same day. When layoffs are mainly caused by automation, the notice now has to name the job functions being automated. On hiring, the law only asks the state for a report on AI’s effects, due January 1, 2028. Source.
- AI was cited in 116,175 announced US job cuts through August, about 22% of the total and the top reason this year. Total cuts are down 41% from last year, though. Hiring plans are up 37%, but Andy Challenger says “it doesn’t appear those positions are being filled quickly.” Source.
- US entry-level job postings are down about 35% since early 2023. Source.
Our take
A layoff leaves a paper trail: a name, a date, a notice and, in California, a human who has to sign off. The 22-year-old who never got called for an interview leaves none of that. No layoff count includes them.
So the new laws go after the part of the problem you can see. That’s still worth doing. But we think AI’s effect on work over the next year will show up mostly as fewer junior openings, not mass firings. We also expect other states to copy SB 947 while the loss of junior openings gets less attention.
AI isn’t the only reason entry-level postings fell. Higher rates and post-pandemic over-hiring did plenty of damage too. But the numbers here line up: companies are cutting fewer people overall and hiring fewer beginners.
Watch
Entry-level job postings. If they climb back while AI-linked layoffs stay high, we’re wrong, and firing really is the main story.