AI Hits Young Tech Workers First: Goldman Sachs

Goldman Sachs Economist Warns: AI Is Already Reshaping the Labor Market, Starting with Young Tech Workers

The Dawn of AI in the Workplace: What Goldman Sachs Is Saying

Artificial intelligence (AI) has evolved from a futuristic vision to a transformative force reshaping industries worldwide. According to Jan Hatzis, Goldman Sachs’ chief economist, AI is already impacting the labor market, with young tech workers bearing the brunt of early disruptions. In a report titled Quantifying the Risks of AI-Related Job Displacement, co-authored by senior global economist Joseph Briggs, Goldman Sachs highlights how generative AI is beginning to alter employment trends, particularly in the tech sector. This trend is not confined to the United States; India, a global tech hub, is also experiencing significant shifts as AI adoption accelerates.

Visual Suggestion: Insert an infographic here summarizing global and Indian statistics on AI’s impact on employment, highlighting key figures like the 3% unemployment surge among young tech workers and the projected 6-7% job displacement over the next decade.

Young Tech Workers: The First to Feel the Heat

The tech industry, long a beacon of opportunity for young graduates, is now facing challenges due to AI-driven automation. In the US, unemployment rates among tech workers aged 20-30 have surged by nearly 3 percentage points since early 2024, a rate over four times the increase in the overall jobless rate. This trend began around November 2022—coinciding with the launch of ChatGPT—marking a peak in tech sector employment, which then declined below its historical trend.

In India, the impact is equally pronounced. The country’s IT industry, a cornerstone of its economy, saw over 50,000 job cuts in 2024, primarily affecting entry-level programmers and software testers. Indian startups, such as Ola Electric, laid off 1,000 employees in 2025 after automating front-end operations. These layoffs disproportionately affect young workers, who often occupy roles most susceptible to automation.

Relatable Example: Consider Ramesh, a 25-year-old software engineer from a small village in Uttar Pradesh. When his company adopted AI tools for coding, his job was at risk. By enrolling in a government-backed reskilling program, Ramesh learned data science, securing a higher-paying role that leverages AI. His story underscores the importance of adaptability in navigating AI’s impact.

By the Numbers: AI’s Impact on Employment

Goldman Sachs’ analysis provides a stark picture of AI’s influence on the labor market. Key statistics include:

Metric	Details
Unemployment Surge	Tech workers aged 20-30 in the US saw a 3% unemployment increase since early 2024, over four times the overall jobless rate rise.
Job Displacement Estimate	Over the next decade, generative AI could potentially displace 6–7% of the U.S. workforce.
Indian Job Impact	AI could transform 38 million jobs in India by 2030, with 24% of tasks fully automatable and 42% enhanced by AI (EY India).
Global AI Exposure	Nearly 40% of global employment is exposed to AI, with India at 40% compared to 60% in advanced economies (IMF).
Recent Job Losses	Over 10,000 tech jobs were lost in July 2025 due to increased AI adoption (Scott Santen's on X).

In India, sectors like manufacturing, customer service, and logistics face significant job losses due to automation, particularly for low-skilled workers. However, industries such as data science and AI development are seeing rapid growth, creating demand for skilled professionals. Reskilling Imperative: The Economic Survey of India underscores the critical need for reskilling to adapt to AI-driven changes, noting that while AI poses risks, it also unlocks vast opportunities for India’s youthful workforce.

Visual Suggestion: Include a bar chart here comparing unemployment rate increases for young tech workers versus the overall jobless rate in the US and India, highlighting the disproportionate impact on the 20-30 age group.

Looking Ahead: The Future of Work in an AI-Driven World

While the immediate impact of AI is concerning, Goldman Sachs forecasts that the peak unemployment impact will be limited to a “manageable” 0.5 percentage point, as other industries absorb displaced workers. In India, the government is partnering with tech giants like Microsoft and Intel to launch AI training programs, aiming to prepare the workforce for new roles. Future Workforce Needs: The World Economic Forum’s Future of Jobs Report 2025 estimates that 63% of Indian workers will require reskilling or upskilling by 2030 to meet the evolving demands of an AI-driven economy. Of an AI-driven economy.

AI is also expected to revolutionize traditional sectors in India. For example, in agriculture, AI tools can optimize crop yields, creating roles for data analysts in rural areas. In healthcare, AI-assisted diagnostics can enhance patient care, leading to new opportunities for skilled professionals. These developments suggest that while AI may displace some jobs, it will also create new ones, provided workers are equipped with the right skills.

Balancing the Scales: Opportunities Amidst Challenges

Despite the challenges, AI offers significant opportunities. In the US, technology executives from companies like Alphabet, Microsoft, and Salesforce report that AI handles up to 50% of internal work, boosting productivity. In India, a report by EY India predicts that AI adoption could drive a 2.61% productivity boost by 2030, with potential for an additional 2.82% if generative AI is adopted in the unorganized sector. This productivity gain could lead to new high-skilled roles in data science, machine learning, and AI engineering.

Relatable Example: Priya, a recent graduate from Bengaluru, struggled to find a job in the competitive tech market. By taking free online courses in AI and machine learning, she transitioned into a role as an AI project manager, leading teams that integrate AI into business processes. Her success highlights how upskilling can open doors in an AI-driven world.

Skills for the Future: For young workers, the priority is to build skills that complement AI—like critical thinking, creativity, and emotional intelligence. Jobs requiring human-centric skills, like teaching or therapy, are less likely to be automated, offering stable career paths.

Visual Suggestion: Feature icons or images representing new job roles created by AI, such as AI engineers, data scientists, and AI project managers, to illustrate emerging opportunities.

Voices from the Field: What Experts Are Saying

The impact of AI on jobs is a topic of heated debate. In the US, Anthropic CEO Dario Amodei warns that AI could eliminate 50% of entry-level, white-collar jobs within five years. Conversely, David Sacks and Balaji Srinivasan argue that AI-driven job displacement is overhyped, emphasizing that humans remain essential in AI workflows. In India, the Economic Survey calls for a “grand alliance” of government and private sectors to ensure AI augments rather than displaces labor. Chief Economic Advisor V. Anantha Nageswaran stresses that without labor income, demand growth could stall, affecting corporate profitability.

Other voices, like Nvidia CEO Jensen Huang, suggest that AI tools like ChatGPT could make traditional coding skills redundant, a concern echoed by Indian IT experts. However, the Naukri AI Job Hiring Report 2025 notes a 38% rise in AI/ML job openings in Q1 FY26, indicating growing demand for AI-skilled professionals.

What This Means for You: Navigating the Changing Landscape

For young professionals and students in India, the rise of AI underscores the importance of continuous learning. Here are actionable steps to stay competitive:

Upskill in AI-Related Fields: Enroll in courses on platforms like Coursera or government-backed programs with Microsoft and Intel to learn skills like data science and machine learning.
Develop Soft Skills: Focus on creativity, problem-solving, and emotional intelligence, which AI cannot replicate.
Stay Informed: Follow industry trends through resources like India AI and NASSCOM.
Leverage AI Tools: Learn to use AI tools to enhance your work, making you more valuable to employers.

The Indian government’s initiatives, such as partnerships with tech companies, provide accessible training opportunities. By embracing these resources, young workers can turn AI’s challenges into opportunities.

Visual Suggestion: Include a flowchart here depicting the steps to prepare for an AI-driven job market, such as enrolling in courses, developing soft skills, and staying informed.

Conclusion

AI and the Labor Market: AI is transforming the workforce, with young tech professionals in both the U.S. and India is already experiencing the early impacts of this transformation, especially among its young and tech-savvy workforce. While challenges like job displacement are real, opportunities in high-skilled roles and traditional sectors offer hope. Adapt to Thrive: By remaining proactive and adaptable, individuals can confidently navigate the evolving AI landscape—positioning themselves not just to survive, but to thrive in a tech-driven future. As Nvidia CEO Jensen Huang aptly put it, “You are not going to lose your job to AI, but you are going to lose your job to somebody who Embrace AI: Use AI as a powerful tool to enhance your skills, boost productivity, and empower your career growth in the digital age.

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Explore how AI is shaping the future of work with our related articles on AI and the Future of Jobs in India and Skills for the AI Era. Subscribe to our newsletter for the latest updates on technology and employment trends in India, or download our free AI Career Guide to start preparing today.

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