TLDR: A senior economist at Goldman Sachs, Joseph Briggs, warns that Artificial Intelligence (AI) is poised to initially displace Gen Z professionals, particularly those in junior tech roles. This trend is already evident in rising unemployment among young tech workers and significant layoffs in 2025, as companies leverage generative AI to automate entry-level tasks and reduce overhead. The shift is forcing Gen Z to reconsider traditional education pathways and focus on adaptability and new skills.
Joseph Briggs, a senior economist at Goldman Sachs, has issued a stark warning regarding the immediate impact of Artificial Intelligence on the job market, specifically targeting Gen Z tech workers. According to Briggs, young professionals in junior technology roles are at the forefront of job displacement as companies increasingly automate entry-level tasks through AI. This prediction aligns with observed trends of rising unemployment and substantial layoffs throughout 2025.
Data from Goldman Sachs indicates a notable increase in unemployment among tech workers aged 20 to 30, rising by approximately 3 percentage points since early 2025. This surge is significantly higher compared to older workers or young professionals in other sectors. The tech industry alone has witnessed over 50,000 layoffs this year, with major players like Microsoft, Meta, and Google contributing significantly to these cuts. Many of these job reductions are directly linked to AI taking over repetitive or entry-level responsibilities traditionally assigned to junior employees.
Furthermore, job listings for such roles in the US have seen a sharp decline, falling by 35 percent since 2023. This growing disparity between educational qualifications and employer demand is making it increasingly difficult for Gen Z to establish stable careers. Despite only about 9 percent of companies currently utilizing AI in core production, the roles being targeted are precisely those typically filled by younger workers, hindering recent graduates’ entry into the field and their upward mobility.
The AI revolution is perceived by nearly half of Gen Z job seekers as diminishing the value of their college degrees, prompting questions about the future relevance of traditional education. Consequently, many young professionals are exploring alternative pathways such as bootcamps, certifications, and entrepreneurial ventures to maintain relevance and resilience in a rapidly evolving job market.
While AI is often cited as the primary cause for job losses, some economists, including leading economic historian Brad DeLong, suggest a more complex scenario. DeLong posits that weak productivity growth, broader economic uncertainty, and policy inertia also play significant roles in reduced hiring. Companies, operating cautiously in the current economic climate, may be using AI as a convenient justification for limiting headcount. This has created a challenging environment characterized by slow job creation and restrained firing.
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Federal Reserve data supports this, showing an unemployment rate of approximately 5.8 percent for recent college graduates and about 6.9 percent for young workers overall, many of whom are underemployed. These structural challenges underscore that the Gen Z workforce is entering a transformed labor market where adaptability, emotional intelligence, and hands-on problem-solving skills are becoming as crucial as technical proficiency.
