Texas Hiring for AI-Exposed Jobs Lagged Other Roles by 8% in First Quarter

  • Dallas Fed researchers found weaker Texas hiring for AI-high-exposure positions.
  • 8%: Texas hiring for AI-high-exposure positions trailed lower-exposure roles in Q1 2025.
  • International Labour Organization reported 12.4% global youth unemployment in 2025.

Hiring for AI-high-exposure positions in Texas lagged lower-exposure roles by roughly 8% in the first quarter of 2025, Federal Reserve Bank of Dallas researchers Samuel Dodini and Tucker Smith found. These positions include software development, web design, computer-intensive work, management, clerical support and editing, which have traditionally provided entry points for college graduates. The researchers said unemployment among recent college graduates rose to unusually high levels during rapid generative AI adoption, as AI tools displaced some entry-level output. Texas has the largest data center capacity under construction among U.S. states, but the employment gains have mainly reached power engineers, construction workers and equipment maintenance personnel rather than software engineers or data analysts. The development has fueled public opposition: a July 2025 University of Pennsylvania Annenberg Public Policy Center survey found 61% of American adults opposed data center construction near their homes, 12 percentage points higher than in February–March. Texas Republican Governor Greg Abbott has shifted from supporting the industry to criticizing it, while Donald Trump has defended data centers. The International Labour Organization said global youth unemployment reached 12.4% in 2025, or about 67 million people, with rates at 9.8% in North America and 15% in Western Europe.

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