AI Is Increasing Unemployment Among Young Tech Workers

Young tech workers face rising unemployment as AI reshapes job markets.

AI Alters Employment Landscape for Young Tech Workers

The job market shift in the United States is increasingly affecting young tech workers, according to a report by Goldman Sachs. Since early 2024, the unemployment rate for individuals aged 20 to 30 in the tech sector has surged nearly 3 percentage points, significantly outpacing the overall increase in unemployment. Jan Hatzius, Goldman’s chief economist, noted that this trend began shortly after the launch of ChatGPT in November 2022, marking a decline in tech's share of US employment. The firm estimates that generative AI will displace around 6-7% of US workers over the next decade, with early-career professionals experiencing the most substantial impact. Goldman believes that despite the current sharp rise in unemployment within this demographic, the overall effects will stabilize, leading to a manageable increase of only 0.5 percentage points in unemployment rates as other sectors absorb many displaced workers.

The worrying trend for young tech workers illustrates the deeper implications of AI integration in many industries. As generative AI becomes more mainstream, young professionals—often in the beginning stages of their careers—are at risk of job displacement. This situation is exacerbated by insufficient job growth across the broader economy, as indicated by recent Federal statistics. With the economy adding only 73,000 jobs in July, well below expectations, fears of a labor market slowdown mount. Higher tariffs have compounded the situation, stunting potential economic recovery. The risks for younger tech workers add pressure not only on their immediate job prospects but also on the long-term sustainability of a workforce largely reliant on evolving technology.

Highlights

The ongoing evolution of AI will require adaptability from the workforce to thrive in new job markets.