A recent analysis from Goldman Sachs identifies Generation Z tech workers as the most at risk amid the ongoing AI-driven changes in the labor market.
According to Fortune, AI is rapidly transforming the tech industry, and young professionals—particularly those in Gen Z—are bearing the brunt of these shifts. Joseph Briggs, a senior global economist at Goldman, noted that unemployment among tech workers aged 20 to 30 has surged at a rate faster than both the broader tech sector and younger workers in other fields.
In a recent episode of Goldman Sachs’ Exchanges podcast, Briggs highlighted that the unemployment rate for this age group has increased by about three percent since the beginning of the year. This rise is significant, especially when compared to overall unemployment trends in tech and among young workers generally. “This is a much larger increase than we’ve seen in the tech sector as a whole or for other young workers,” Briggs stated.
While the use of AI in workplaces remains limited—Goldman Sachs estimates only about nine percent of companies have integrated AI regularly—this shift has coincided with a notable slowdown in tech hiring. Since the launch of OpenAI’s ChatGPT, the industry has experienced a departure from over two decades of steady job growth. Major tech companies like Microsoft, Google, and Meta have collectively laid off nearly 30,000 employees as they redirect investments toward AI, intensifying competition for available roles.
The effects are particularly pronounced at the entry-level. Job postings for entry-level tech positions in the U.S. have plummeted by around 35 percent since January 2023, leaving many recent graduates and early-career professionals struggling to secure jobs. Nearly half of Gen Z job seekers now feel that AI has devalued their college degrees, according to an April report from the World Economic Forum.
Breitbart News previously reported on AI’s threat to entry-level jobs, citing data from the Wall Street Journal:
Data from the Burning Glass Institute reveals a decline in the share of graduates in the labor force with a bachelor’s degree one year post-graduation, diverging from historical norms. This trend spans various fields, affecting majors from visual arts to engineering. Unemployment among recent college graduates is rising faster than that of individuals with only a high school diploma or associate’s degree.
Employers are noticing the change. At Chicago-based Hirewell, marketing clients have largely stopped seeking entry-level staff, opting for AI solutions instead. “Having a good job ‘guaranteed’ after college—I don’t think that’s the reality anymore,” said Bill Balderaz, CEO of consulting firm Futurety, who opted not to hire a summer intern this year, preferring AI for social media tasks.
Briggs pointed out that while the overall impact of AI on young workers across industries is relatively minor, the tech sector is an exception. “If we zoom in on specific industries where AI is driving efficiency gains, we see emerging challenges,” he remarked.
However, AI isn’t the only factor affecting the job market. Briggs described the current climate for young workers as a “low-hiring, low-firing” environment. Newly graduated college students are experiencing sluggish hiring rates, with unemployment among this group rising to about 5.5 percent—comparable to the rate for young people without a degree. For all workers aged 22 to 27, the unemployment rate now stands at 6.9 percent.
