Goldman Sachs Reports AI Displacement of Young Tech Workers

Economists at Goldman Sachs report that generative AI is increasing unemployment among tech workers aged 20 to 30, whose jobless rate has risen by nearly 3 percentage points since early 2024. This spike is more than four times the overall jobless increase and significantly higher than trends seen among other young workers or the broader tech sector. The firm notes that U.S. entry-level job postings have declined by 35% since January 2023 as AI begins to replace white-collar entry-level roles.

Goldman Sachs estimates that generative AI will eventually displace 6% to 7% of all U.S. workers over the next decade. While Chief Economist Jan Hatzius suggests the overall unemployment increase may be a manageable 0.5% as workers shift industries, other analysts warn that faster adoption or the emergence of artificial general intelligence could create a more profound macroeconomic shock. This trend coincides with broader labor market weakness, highlighted by July jobs data showing only 73,000 new positions.

Some economists dispute the AI-driven narrative. Brad DeLong argues that blaming AI allows leaders to avoid addressing structural issues, such as the mismatch between college curricula and employer needs or policy uncertainty under President Donald Trump.