Goldman Sachs uncovers troubling pattern behind AI and tech job losses

• AI eliminates roughly 25,000 US jobs monthly while creating only 9,000 new positions through productivity gains, resulting in net losses concentrated in data entry, customer service, and administrative work
• Displaced tech workers experience 'occupational downgrading,' spending about a month unemployed before accepting lower-skilled roles with pay cuts that compound over time and delay life milestones
• Gen Z workers face disproportionate impact as AI targets entry-level positions first, with unemployment and wage gaps widening by 3.3 percentage points in AI-exposed occupations compared to experienced workers

Summary: Goldman Sachs Study Reveals Long-Term Impact of AI-Driven Job Losses

A new Goldman Sachs study reveals that workers displaced by technology and AI face prolonged unemployment and lasting wage penalties. Tech-driven layoffs result in approximately one month of unemployment and initial pay cuts exceeding 3% when workers find new positions. More significantly, displaced workers experience earnings growth that lags nearly 10 percentage points behind those never laid off—losses that compound over time.

Key Findings:

• AI is eliminating roughly 16,000 net U.S. jobs monthly, with 25,000 positions lost versus only 9,000 created through productivity gains
• Displaced workers face "occupational downgrading," forcing them into lower-skilled, lower-paying roles
• Career setbacks extend beyond finances to delayed life milestones including homeownership and family planning

Most Affected Workers:

Gen Z and entry-level employees bear the heaviest burden, particularly those in routine administrative roles such as data entry, customer service, legal support, and billing. The unemployment gap between workers under 30 and those aged 31-50 in AI-exposed occupations has widened sharply, with wage gaps expanding by approximately 3.3 percentage points.

Market Perspective:

While the Goldman study highlights significant challenges, some analysts remain optimistic. Marcus Mossberger, chief market strategy officer, argues the damage isn't permanent, noting technology historically creates more jobs than it destroys—though they require different skills. He emphasized that AI is reshaping rather than eliminating jobs entirely, stressing the critical need for continuous worker retraining and adaptation.

The report, released Monday, suggests these patterns will likely intensify as AI adoption accelerates across industries.