The rise of generative artificial intelligence (AI) is already reshaping the American labor market, with early impacts being felt among young technology workers, according to a leading economist at Goldman Sachs. Joseph Briggs, senior global economist at Goldman’s research division, noted that unemployment rates among tech workers aged 20 to 30 have increased by three percentage points since the start of 2025, marking the most visible sign of AI-driven job displacement to date.
Entry-level tech positions are increasingly vulnerable to AI automation.
Briggs explained in a recent podcast episode that while most companies have not yet fully deployed AI across their operations, the technology sector is already experiencing a hiring slowdown, disproportionately affecting junior employees. He stated that tech employment had been growing consistently as a share of the overall workforce for two decades, but in the past three years, hiring in tech has fallen below its historical trend.
The release of ChatGPT in late 2022 accelerated AI adoption across industries, significantly boosting companies like Nvidia, while forcing businesses to reconsider workforce strategies. Generative AI systems are now capable of handling routine coding and administrative tasks, leading technology leaders such as Microsoft and Salesforce to report that AI contributes to as much as 50% of the work on certain projects.
Younger employees face disproportionate impact from AI automation
Briggs’ research, co-authored in a Goldman Sachs report titled “Quantifying the Risks of AI-Related Job Displacement,” highlights that junior tech roles, which are easier to automate, are among the first to be impacted. He added that this initial wave of labor substitution is a deliberate strategy by tech companies aiming to streamline operations before extending AI’s role deeper into their organizations.
George Lee, co-head of the Goldman Sachs Global Institute, noted that the current trend among technology executives is to delay hiring junior employees as AI deployment advances. Lee emphasized that companies are seeking to remain agile and competitive, making younger workers the initial casualties of AI-driven restructuring.
Artificial general intelligence may deepen job market disruptions
Briggs warned that AI-driven automation could displace approximately 6% to 7% of the total workforce in a baseline scenario. However, if AI adoption accelerates faster than the projected decade-long transition period, due to technological breakthroughs or economic pressures, the disruption to employment could be significantly more severe.
Additionally, Briggs pointed out that the emergence of artificial general intelligence (AGI) AI systems capable of learning and adapting across diverse tasks like humans could dramatically increase the scope of job displacement. He emphasized that the current analysis does not account for AGI, but its potential development would likely lead to more profound labor substitution and deeper economic impacts across various sectors. – By Content Syndication Services.