Goldman Sachs reveals rising unemployment for young tech workers

Goldman Sachs economist Joseph Briggs highlights growing unemployment among younger tech employees.

Goldman Sachs reports rise in unemployment for young tech workers

Unemployment rates for tech workers aged 20 to 30 have risen by 3 percentage points since the beginning of 2023, according to Joseph Briggs, a senior economist at Goldman Sachs. This increase signals early effects of generative AI on the labor market. Though AI technology is not yet widely implemented, there are initial signs of hiring slowdowns in the tech sector, particularly affecting younger workers. Briggs noted that trends in tech employment had shown steady growth for the past two decades until recent pullbacks. Generative AI is rapidly capable of performing routine tasks that were traditionally done by humans, raising concerns about job displacement in the sector. Many tech companies acknowledge the significant roles AI tools now play in their coding processes, which is further intensifying these employment concerns.

The rise in unemployment among younger tech workers may signal broader implications for the labor market as the influence of generative AI expands. With AI performing tasks previously reserved for human workers, companies are reevaluating their talent needs. This trend suggests a pivotal shift in the job landscape, where younger professionals may face heightened instability as their roles become increasingly automated. The stark contrast in employment rates highlights the urgent need for workers to adapt and acquire new skills to remain relevant as the sector transforms.

Highlights

This trend emphasizes the importance of adaptation as technological advancements reshape the job market.