It is not the doom-and-gloom scenario that some tech pessimists have predicted, but young professionals in the technology sector are feeling the fallout of rapid advances in artificial intelligence. A senior Goldman Sachs (NYSE: GS) economist has drawn attention to a striking trend: unemployment among tech workers aged 20 to 30 has jumped by three percentage points since the start of this year, a surge that far outpaces broader labor market trends and puts a spotlight on the disruptive power of generative AI tools.
This shift is no longer something to forecast for the far-off future. It is happening now, reflected in the kinds of jobs software companies are offering, the hiring patterns of major tech players, and the on-the-ground experience of recent graduates trying to get a foothold in the industry. Since the debut of OpenAI’s ChatGPT in November 2022, the share of tech employment within the broader U.S. labor market peaked but has now slid below its long-term trend. Young workers, often the gateway for new talent and ideas, are suddenly the most vulnerable.
Goldman Sachs’ most recent research is clear: entry-level and junior tech roles are most likely to be replaced or fundamentally changed by generative AI, which is increasingly capable of producing code, writing content, and analyzing data with a speed and accuracy that managers once expected from teams of humans. While only a small segment of the overall workforce has been affected so far, the firm estimates that ultimately 6 to 7 percent of all U.S. workers could be displaced by AI-driven automation over roughly the next decade.
For young professionals, it’s not just about losing jobs, but about losing the essential stepping-stone roles that help them develop long-term careers in tech. Entry-level positions, especially those focused on repetitive or supporting tasks, are the kinds most readily automated by generative AI. This means fewer opportunities for fresh graduates to learn on the job, gain mentoring, and prove themselves to experienced teams. Goldman’s economist, in a podcast shared with CNBC, noted that executives are now rethinking how and when they hire junior employees as they adopt modern AI solutions.
That bottleneck is changing the structure of the early-career tech job market. Prolonged job searches and a dearth of opportunities for professional development are becoming common themes in the stories of recent grads. For an industry built on innovation and quick pivots, this represents a new kind of challenge. The hope, among labor economists, is that the disruptions will be gradual and that other sectors will ultimately pick up much of the displaced talent.
There is a silver lining tucked inside the data, though it is not much comfort for those currently pounding the digital pavement. Tech sector layoffs are being matched, at least in narrative form, by the promise of new AI-adjacent opportunities. Roles in artificial intelligence, machine learning, cloud engineering, and emerging subfields are reportedly in high demand, but these are frequently out of reach for workers just entering the market without specialized training. Goldman’s forecast is that if companies continue to integrate AI over the coming decade, the unemployment impact, at its peak, will add a “manageable” half a percentage point to the broader jobless rate as workers transition into new roles.
Still, the ground is shifting. Young workers entering tech may face a new normal where creativity and adaptability are more valuable than ever, and where the competition for every early-career opportunity is not just with fellow graduates, but with code that never sleeps and learns at exponential speed.
