AI Fuels Unemployment Spike in Young Tech Workers

AI Hits Young Tech Workers the Hardest

Artificial intelligence is starting to do what many feared: eat early-career tech jobs.

According to Goldman Sachs’ latest report, the unemployment rate for tech workers aged 20 to 30 has surged nearly 3 percentage points since early 2024—over four times the rate of increase in the general jobless population.

That’s not just a stat. That’s a generational disruption in progress.

What the Data Shows

Goldman chief economist Jan Hatzius notes that tech’s share of U.S. employment peaked in November 2022—the month ChatGPT was launched—and has been on a steady decline ever since.

Even though tech roles make up a small share of the overall labor market, the disproportionate impact on young professionals is worrying economists, recruiters, and policymakers alike.

Hatzius warns that generative AI could eventually displace 6–7% of all U.S. jobs, although many workers may be reabsorbed into other sectors over time.

Jobs Are Stalling, Not Just in Tech

This AI disruption comes amid broader labor market weakness. The U.S. added just 73,000 jobs in July, well below expectations, and downward revisions hit both May and June's job numbers hard.

Goldman estimates the U.S. economy is growing at a sluggish 1.2% annual rate, with tariffs, weak hiring, and flat consumer spending dragging things down further.

CEOs Sound the Alarm

AI executives aren’t sugarcoating things either. In May, **Anthropic CEO Dario Amodei** said that half of all entry-level white-collar jobs could disappear in the next five years due to AI.

Even Perplexity’s CEO said their AI browser could replace two white-collar roles in every company.

So while the headlines often tout AI as a productivity miracle, the reality for Gen Z tech grads is a job market where the machines aren’t just tools—they’re competition.

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