Artificial intelligence is taking jobs, especially from those just entering the workforce. According to data from Goldman Sachs, obtained by Business Insider, the investment firm noted that the tech sector’s share of US employment, is now declining.
In fact, Goldman Sachs noted that the tech sector’s employment share peaked in November 2022, the same month ChatGPT was launched, but has been declining ever since. The unemployment rate for 20- to 30-year-olds in tech has risen by nearly 3 perc entage points since early 2024, more than four times the increase in the overall jobless rate. Goldman Sachs says the the spike in jobless rate is an indicator that AI is beginning to take over white-collar work in the entry-level jobs.
The bank’s Chief Economist, Jan Hatzius, estimated in the note that AI will replace 6 per cent to 7 per cent of all US workers within the next decade. However, he predicted that the unemployment rate would only grow by a “manageable” 0.5 per cent due to AI, because affected workers would shift to other industries.
Fears that artificial intelligence will cost people their jobs are already proving to be true. The impacts are already being felt, as many tech companies continue to trim their workforces. Industry leaders like Anthropic’s Dario Amodei and Amazon’s Andy Jassy have admitted that AI will replace humans in white-collar jobs. Many companies are cutting roles in content, operations, customer service, and Human Resources — functions where generative AI and agentic tools are increasingly capable. However, corporations continue to present these changes as moves toward “efficiency,” despite maintaining healthy balance sheets.
That being said, software engineers remain in high demand, with companies like Facebook parent Meta offering multimillion-dollar pay packages. LinkedIn found that “AI engineer” is the fastest-growing job title among recent college graduates, with two related roles: data center technician and systems engineer coming in at No 3 and 4.
In India, however, the impact of AI on jobs is less severe compared to what is happening in the U.S. More and more companies are expanding their presence in India and opening new offices.
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