A Goldman Sachs economist warned that Z-tech workers are at their greatest risk as artificial intelligence begins to compete for the labor market.
Joseph Briggs, a global senior economist at Goldman Sachs Research, said the unemployment rate among young people aged 20 to 30 in the technology sector has increased by about 3% since the beginning of the year.
“It’s much bigger than what we’re seeing (in) the technology field, or more widespread or larger than other young workers,” Briggs said in an episode of the bank. Goldman Sachs Exchange podcast That aired Tuesday.
So far, AI adoption in the workplace has been modest: According to a recent Goldman Sachs report, about 9% of companies regularly use the technology for the production of goods or services, “quantifying the risk of AI-related work displacement co-written by Briggs.” However, over the past few years, employment in the technology sector has been declining, with Release Openai’s Chatppt– Destroyed more than 20 years of job growth in the industry.
The bank predicts that AI will replace 6-7% of the total workforce.
The spread of AI adoption will surely have a huge impact on the technology industry and have Microsoft,,,,, Google,,,,, Yuanand other tech giants Nearly 30,000 workers were laid off When they transfer their investment to AI, they collectively. But while millennials are the generation that learns code, ZZ Gen gen of to Gen of to Geen stands out in technical work. Exceed Artificial intelligence has damaged opportunities in the technology field, and the rise of automation is also particularly in disrupting entry-level positions, in the United States, entry-level job releases Reduce by about 35% Since January 2023.
Generation Z feels stressed. According to April World Economic Forum Report.
“This story is about the overall impact of the labor market on young workers is small,” Briggs said. “But if we start shrinking and amplifying in these specific industries where we see improvements that AI can use to improve efficiency, there are signs that headwinds are coming out there.”
Generation Z’s wider employment dilemma
More broadly, young people are entering a “low recruitment, low shooting” job market, Briggs believes. In other words, while AI may be changing the workforce landscape, Gen Z workers must also be friendly with the job market to new employees.
“There are a lot of questions about lagging hiring rates or the difficulties faced by recent college graduates,” he said. “I’m sure we all know that people who have a hard time finding a job or a tough time, usually they usually have after their recent graduation.”
Briggs said he “certainly saw these lower hiring rates for recent college graduates”. The Fed in New York found last month unemployment among recent college graduates Increased to about 5.5%now roughly the same as young people who are not in college. For all young workers between the ages of 22 and 27, the unemployment rate is 6.9%.
Brad DeLong, professor of economics at UC Berkeley, in a recent report Alternative Positions That young man AI should not be blamed For their unemployment difficulties, but for reasons that they cannot be hired, be aware of economic uncertainty from trade wars to inflation.
DeLong believes that as the company adopts a waiting policy, they learn more about the consequences of President Donald Trump’s economic policy, they did not fire employees, but waited for employment. At the same time, AI has become a scapegoat for businesses that are aware of their decisions rather than expanding their time, he said.
“Blaming AI allows policy makers and business leaders to avoid solving deeper structural problems, such as mismatches between what universities teach and what employers need, or long-term stagnation in productivity growth, has made companies more cautious about wages that expand, or short-term policy uncertainty,” DeLong wrote. ”
