Breaking: A new Goldman Sachs report indicates a meaningful rise in unemployment among young tech workers in teh U.S., directly correlating with the increased adoption of Artificial Intelligence (AI) since november 2022. the findings suggest AI is beginning to displace white-collar jobs, starting with entry-level positions.
The tech sector’s share of U.S. employment, which peaked in late 2022, has been steadily declining as the introduction of ChatGPT, according to the August 5th Goldman Sachs analysis obtained by Business Insider. This marks a shift from previous periods of consistent tech sector growth.
The unemployment rate for individuals aged 20-30 seeking tech employment has increased by nearly 3% since the beginning of 2024 – a rate more than four times the overall U.S. unemployment increase during the same period. Specifically, the rate rose from 2.8% in January 2024 to 5.7% in June 2024, representing a 2.9 percentage point increase. This data contrasts with the overall U.S. unemployment rate, which increased by approximately 0.7% over the same timeframe.
Industry leaders are echoing these concerns. Anthropic CEO dario Amodei recently warned that AI will disrupt numerous sectors, including technology, law, and finance. Nobel Laureate Geoffrey Hinton, known as the “Godfather of AI” for his work on neural networks at the University of Toronto, predicted in June that AI will “just replace everybody” in white-collar jobs, particularly those involving “mundane intellectual labor.” Hinton previously worked at Google but left in April 2023 to freely speak about the risks of AI.
Goldman Sachs’ assessment aligns with a broader trend of companies re-evaluating their workforce needs in light of AI capabilities. The firm itself has been shifting roles, with recent announcements in February 2024 encouraging managers to relocate to Dallas and Salt Lake City, possibly indicating a restructuring influenced by automation possibilities.
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