Goldman Sachs Report Reveals AI’s Impact on Jobs for Young Tech Workers
Artificial intelligence (AI) is transforming the U.S. job market, with young tech workers aged 20–30 facing significant challenges, according to a recent Goldman Sachs report.
Since early 2024, the unemployment rate for this group has surged by nearly 3 percentage points, a rate over four times higher than the overall jobless increase.
This trend, which began after the launch of ChatGPT in November 2022, marks a shift in the tech sector’s employment landscape, as its share of U.S. jobs has dipped below its long-term trend.
Goldman Sachs attributes this spike to generative AI’s growing ability to automate entry-level white-collar tasks, such as coding and data analysis, which are often performed by younger professionals.
The report, led by Goldman Sachs’ chief economist Jan Hatzius, predicts that AI could displace 6–7% of U.S. workers over the next decade.
However, the overall unemployment rate is expected to rise by only a “manageable” 0.5 percentage points, as displaced workers may transition to other industries.
This forecast comes amid broader economic concerns, with the U.S. economy adding just 73,000 jobs in July 2025, well below the expected 106,000, and job growth for May and June revised downward.
Hatzius notes that a slowdown in U.S. output growth, partly due to higher tariffs, poses a more immediate challenge than AI’s impact.
For young tech workers, the rise of AI presents both challenges and opportunities. While entry-level roles are increasingly automated, demand for specialized AI-related positions, such as AI engineers, is growing.
Companies like Meta are offering competitive salaries for top talent, and LinkedIn data highlights “AI engineer” as the fastest-growing job title among recent graduates. To remain competitive, young professionals may need to upskill in AI-related fields or seek roles less susceptible to automation.
This shift has significant implications for businesses, which must balance AI adoption with workforce stability.
Upskilling initiatives and proactive policies could help mitigate job displacement and foster inclusive growth. As AI continues to reshape the tech industry, both workers and companies will need to adapt to navigate this evolving landscape.
FAQ
How is AI affecting tech jobs in 2025?
AI, particularly generative AI, is automating entry-level tech tasks, leading to a nearly 3% unemployment spike among 20- to 30-year-old tech workers since early 2024, according to Goldman Sachs.
Will AI replace all tech jobs?
No, Goldman Sachs predicts AI will displace 6–7% of U.S. workers over the next decade, but many will shift to other industries, keeping the unemployment rise to about 0.5%. Demand for AI-specialized roles is also increasing.
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