Goldman Sachs Report Highlights AI's Impact on Entry-Level Job Market
A report by Goldman Sachs has found that entry-level workers are bearing the brunt of job losses attributed to artificial intelligence (AI) adoption. The bank's research, published on Wednesday, analyzed employment trends across over 800 occupations in developed economies, revealing that the impact of AI is most pronounced at the beginning of careers.
The report indicates that industries most susceptible to automation have experienced a slowdown in job openings since the latter half of 2022, with the clearest effects observed in Germany, Australia, and the US. Employment in information and communication services has declined across major developed economies, while specific sectors such as call centers, software publishing, management consulting, and advertising services have seen even sharper declines.
Notably, employment in US call centers is trailing historical trends by 39%, with similar declines in Canada and Germany. This trend underscores that job losses often occur where automation tools are already in place. For instance, Uber explicitly linked its customer service job cuts to an AI efficiency initiative.
Goldman Sachs noted that while the overall workforce experiences a minor impact from AI, entry-level roles are significantly affected. In Australia, a 10% exposure to AI has been associated with a 0.6 percentage point decrease in job growth for entry-level positions, compared to a 0.2 point decline in the US.
The report also highlighted a shift in educational choices among students, with many opting for fields perceived as safer than computer science. Additionally, data from Challenger, Gray & Christmas indicated that AI has been the leading cause of job cuts, accounting for 33% of layoffs in July alone.
Despite these challenges, companies have announced plans for 107,500 new hires through July, with strong demand in sectors like aerospace and manufacturing. This suggests that while AI is reshaping the labor market, it is not entirely dismantling it. As AI adoption continues to rise, lawmakers are closely monitoring the situation to address potential displacement issues.
Updated 13:04 UTC
New Insights from Goldman Sachs on AI and Job Market
Goldman Sachs Research estimates that AI is causing a net loss of approximately 16,000 jobs per month in the US, contributing to a 0.1 percentage point increase in the unemployment rate.
While AI is creating around 9,000 new jobs each month, the overall displacement is significantly higher, with a gross figure of about 25,000 jobs lost monthly due to AI substitution.
Industries such as technology, management consulting, graphic design, and customer service are experiencing the most significant job losses, with Gen Z and entry-level white-collar workers disproportionately affected.
By June 2026, Goldman revised its net job loss estimate to approximately 11,000 positions, reflecting counterbalancing hiring in sectors like construction.
The ongoing monthly drag from AI-heavy industries is estimated to be between 10,000 to 15,000 jobs, indicating a persistent impact on payroll growth.
Despite the creation of new roles such as AI trainers and prompt engineers, the net loss of jobs remains a significant concern, as the new positions often require different skills and may not be located in the same areas as the jobs they replace.
FAQ
What does the Goldman Sachs report say about AI's impact on entry-level jobs?
The Goldman Sachs report indicates that entry-level workers are experiencing significant job losses due to AI adoption, particularly in industries most susceptible to automation. The report highlights a slowdown in job openings for entry-level positions since the latter half of 2022.
Which countries are most affected by AI-related job losses?
The report notes that Germany, Australia, and the US have seen the clearest effects of AI on job losses, particularly in sectors such as call centers, software publishing, and management consulting.
How has AI affected job growth in entry-level positions?
In Australia, a 10% exposure to AI has been linked to a 0.6 percentage point decrease in job growth for entry-level positions, while in the US, the decline is about 0.2 percentage points.
What trends are observed in educational choices among students due to AI?
The report highlights a shift in educational choices, with many students opting for fields perceived as safer than computer science, likely due to concerns about job security in the face of AI advancements.
Are there any sectors still hiring despite the impact of AI?
Yes, despite the challenges posed by AI, companies have announced plans for 107,500 new hires through July, with strong demand noted in sectors like aerospace and manufacturing.
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