AI Is Shrinking Entry Level Jobs According to Goldman Sachs

A recent study from Goldman Sachs reveals that entry level workers are experiencing the biggest negative impact from artificial intelligence. The bank analyzed hiring trends across 800 occupations in developed economies and found that industries with high automation, such as call centers and software publishing, are seeing a distinct slowdown in new job openings. This trend is particularly clear in the United States, Germany, and Australia.

While the broader workforce has seen only minor impacts, the cost for those just starting their careers is significant. In some regions, AI exposure has cut growth for entry level roles by more than 0.6 percent. This shift is already changing behavior on college campuses, as students move away from computer science degrees toward fields they perceive as more secure from automation.

Layoff data supports these findings, with AI cited as a primary reason for job cuts for five months in a row. Experts note that companies are increasingly open about using AI to justify workforce changes to keep investors happy. Despite these losses, demand for labor remains strong in sectors like energy and aerospace, suggesting that while the job market is shifting, it is not disappearing.

Investors and workers alike should watch how these hiring patterns evolve as AI adoption rates continue to climb. While the displacement is currently contained to specific industries, the pressure on younger workers remains a critical signal for the future of the global economy.