Gen Z’s Job Crisis: The AI Effect
America’s tech sector faces a new shock as artificial intelligence wipes out career opportunities for Generation Z.
Story Snapshot
- Goldman Sachs finds Gen Z tech workers hit hardest by AI-driven job losses, especially in entry-level roles.
- Unemployment among young tech professionals has surged 3% since early 2024, outpacing other age groups.
- AI automates routine tasks, shrinking opportunities for recent grads and fueling skepticism about college degrees.
- Industry experts warn of lasting generational impacts unless education and workforce policies adapt swiftly.
Goldman Sachs Warns: Gen Z Tech Jobs Vanish as AI Accelerates
In August 2025, a major Goldman Sachs report sounded the alarm: young Americans entering the technology sector are losing jobs to artificial intelligence at unprecedented rates. Led by senior economist Joseph Briggs, this analysis revealed that tech workers aged 20 to 30 experienced a three percentage point rise in unemployment since early 2024—far greater than their older peers. The research points directly to rapid AI automation of routine, entry-level tasks, placing new graduates and junior hires at the greatest risk of displacement.
READ NOW: Goldman Sachs: Generation Z Tech Workers Are Hit Hardest by AI Disruption — A new analysis from Goldman Sachs points to Gen Z tech workers as the most vulnerable group in the ongoing wave of AI-driven disruption across the labor…https://t.co/eznuX1KgtS
— Top News by CPAC (@TopNewsbyCPAC) August 9, 2025
This trend is not isolated. Since late 2022, the launch of advanced generative AI tools like ChatGPT has driven companies to automate repetitive coding, testing, and support roles previously filled by recent college graduates. These entry-level tech positions, once a reliable first step on the career ladder, are being eliminated as businesses race to cut costs and streamline operations. Layoffs and hiring freezes intensified throughout 2024 and 2025, with media coverage and industry data confirming that Gen Z is bearing the brunt of this technological disruption.
Generational Impact and the Shifting Value of College Degrees
Economic and social consequences are mounting for young tech professionals. As opportunities dwindle, many Gen Z job seekers are rethinking the value of expensive four-year degrees, especially as student debt remains at record highs. Instead, there is a marked pivot toward vocational training, trades, and alternative careers that are less vulnerable to automation. This shift raises profound questions about the future of higher education and the ability of traditional institutions to prepare students for a rapidly changing labor market.
Policymakers are facing mounting pressure to support large-scale retraining and upskilling initiatives, or risk leaving an entire generation behind. Without decisive action, Gen Z may become the first cohort in decades to experience declining career prospects and financial security compared to previous generations.
Broader Implications: Economic, Social, and Policy Fallout
The fallout from AI-driven disruption in tech extends far beyond individual workers. Economically, reduced income and spending among young people could slow overall growth and innovation, especially if the pipeline of entry-level talent dries up. Socially, the uncertainty and anxiety caused by disappearing job prospects may foster increased skepticism toward institutions that promised opportunity in exchange for costly education. Politically, the crisis is forcing lawmakers to confront the inadequacies of current workforce and education policies, with demands for bold reforms from both industry and affected communities.
Expert Perspectives
Beyond the headlines, the Goldman Sachs analysis is widely regarded as credible and well-documented, corroborated by reporting from major outlets and independent economists. Joseph Briggs and other industry leaders describe a fundamental labor market shift, with AI replacing routine cognitive jobs and forcing a generational reckoning. As Gen Z pivots toward trades and hands-on careers, the message is unmistakable: America must restore a focus on practical skills, personal responsibility, and limited government interference to preserve opportunity for the next generation.
Sources:
Top economist warns Gen Z tech workers could be first to lose jobs to AI
Goldman Sachs economist warns Gen Z tech workers could be first to lose jobs to AI
Gen Z Ditches College Degrees for Trades in AI Era
AI threatens entry-level tech jobs, Goldman Sachs warns Gen Z workers
Goldman Sachs economist warns AI will replace Gen Z tech workers at first