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AI Adoption and Youth Labour-Market Slack: Early Evidence from EU Countries Cover

AI Adoption and Youth Labour-Market Slack: Early Evidence from EU Countries

Open Access
|Oct 2026
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Abstract

This paper examines whether the sharp adoption of artificial intelligence (AI) is beginning to reshape age-specific labour-market outcomes in Europe. While public debate often focuses on junior job destruction, the first effects of AI may instead appear through weaker labour-market attachment, reduced hours or poorer early-career matching. Using Eurostat data for EU-27 countries in 2021–2025, we combine country-year measures of enterprise AI adoption with unemployment and labour-market slack by age group: youth workers aged 15–24, adults aged 25–54 and seniors aged 55–74. Country panel estimates show no significant differential association between AI adoption and youth unemployment relative to seniors. However, enterprise AI adoption is positively and consistently associated with labour-market slack among younger workers relative to seniors, particularly through forms of labour underutilisation that extend beyond unemployment. These results suggest that the early aggregate effects of AI may be less visible in unemployment than in broader forms of labour underutilisation. The findings point to the importance of monitoring the quality and stability of early-career labour-market entry as AI adoption accelerates.

DOI: https://doi.org/10.2478/lel-2026-0003 | Journal eISSN: 3071-8317 | Journal ISSN: 3071-8317
Language: English
Page range: 21 - 31
Submitted on: Jun 30, 2026
Accepted on: Aug 25, 2026
Published on: Oct 14, 2026
Published by: Asociacion Española de Economia del Trabajo
In partnership with: Paradigm Publishing Services
Publication frequency: 1 issue per year
JEL:

© 2026 Javier G. Clemente, Isabel Reiné-Cortés, published by Asociacion Española de Economia del Trabajo
This work is licensed under the Creative Commons Attribution-NonCommercial 4.0 License.