According to a new analysis by Goldman Sachs economist Joseph Briggs, the rise in generative AI is starting to show tangible effects on the labor market, especially in the technology sector.
Although the widespread deployment of AI is still in the early stages, early employment data reveal a clear trend that young technological workers are faced with increased trip and reduced opportunities.
Speaking on the podcast “Goldman Sachs Exchanges”, Briggs explained that the technological employment that has increased regularly for two decades recently diverged from its long -term trend.
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“In the past three years, we have seen a decline in hiring technology that has led him to underlie his trend”, “ He noted, highlighting a change that coincides with the explosive growth of generative AI tools such as the Openai Chatppt since the end of 2022.
The launch of Chatgpt has marked a pivotal moment in AI, arousing generalized adoption and interest in conversational models. Built on OPENAI’s GPT architecture, it presented the power of large -language models to generate human text, answer questions and help with tasks, making AI accessible to millions.
The massive adoption and success of the AI platform led competition leading to advances like Claude, Gemini and Grok, among others, while increasing debates on ethics, prejudices and professional trips. The training effect continues, AI is now integrated into industries, research and daily life.
The growing automation of employment roles strikes the youngest workers in technology. Reports reveal that unemployment among technology professionals aged 20 to 30 has jumped 3 percentage points in 2025, a clearer increase in the wider technological industry or among young workers in other areas. Entry -level tasks such as filling of forms and basic coding, formerly considered to be walks in industry, are now easily automated, reducing opportunities for new graduates.
Although most companies do not yet integrate large -scale AI, technology already replaces the tasks previously assigned to junior level employees. This is particularly visible in the coding, content generation and data processing areas where AI has proven to be able to match or exceed human performance.
Large technological companies such as Alphabet, Microsoft and Salesforce have openly recognized that AI now contributes to 30 to 50% of work in certain projects.
IBM: IBM has openly discussed the use of AI chatbots to replace 200 HR employees, CEO Arvind Krishna noting that the overall workforce of the company has increased as they have reinvested in other areas. AI is used for tasks such as fraud detection and process automation in sectors such as health care and banking services.
Klarna: The company Fintech was transparent on the reduction of its IA enrollment from 5,000 to around 3,000 employees, the CEO Sebastian Siemiatkowski highlighting the role of AI in the automation of tasks such as customer service and operations.
Fedex: Fedex uses conversational AI to rationalize hiring processes, reducing the time for demand to offer within 10 minutes for certain roles, improving the efficiency of recruitment.
The wider impact of the AI on jobs is increasingly documented. A Challenger, Gray & Christmas report reveals that the adoption of AI has contributed to more than 10,000 job cuts in the first seven months of 2025 only. Since 2023, more than 27,000 layoffs have been directly linked to AI. Technological companies have paved the way, announcing more than 89,000 job cuts this year an increase of 36% compared to 2024.
At the same time, job offers for entry-level business roles have decreased by 15% in the past year, according to Handshake, a popular career platform with generation Z. They also reported an increase of 400% of employers, including “AI” in employment descriptions, reflecting exchange expectations and skills required in the workplace.
Employers adding only 73,000 jobs in July, not having forecasts, analysts warn that the disturbances linked to AI can continue to reshape hiring trends – in particular for younger and less experienced workers seeking to enter an evolving labor market.
