AI’s Unforgiving Impact on Young Workers

Goldman Sachs has sounded the alarm: rapid AI automation is wiping out entry-level tech jobs for Gen Z, leaving young Americans out in the cold as big tech and education elites scramble to adapt.

Story Snapshot

• Gen Z tech workers face the steepest job losses due to accelerated AI automation in 2024–2025.
• Unemployment for tech workers aged 20–30 has risen by about three percentage points, outpacing the rest of the sector.
• Junior tech positions—once a gateway for college graduates—are now the first to be automated away.
• Many young workers are abandoning costly college degrees for trades as faith in higher education erodes.

AI Automation Hits the Youngest Tech Workers Hardest

Since early 2024, America’s entry-level tech workforce—primarily Gen Z aged 20–30—has been caught in the crosshairs of a sweeping technological shift. Goldman Sachs, in a groundbreaking analysis led by Joseph Briggs, reports that unemployment among young tech workers has spiked by about three percentage points. This rise far exceeds the broader tech sector’s unemployment trends, making Gen Z the most vulnerable group during this period of rapid AI adoption. The proliferation of advanced generative AI has allowed companies to automate repetitive tasks that historically provided a foothold for new graduates. As a result, the traditional pathway into tech—starting in junior roles and climbing the ladder—is vanishing, replaced by algorithms and software that perform routine work faster and cheaper.

Tech companies, driven by cost-cutting and efficiency mandates, have responded with hiring freezes and layoffs that disproportionately target entry-level staff. The acceleration began as generative AI tools, such as ChatGPT, became widely available in 2022–2023 and quickly integrated into daily workflows. By mid-2025, AI-driven automation has become commonplace for tasks like basic coding, bug testing, and data analysis—jobs once held by recent college grads. Human resources leaders and CIOs now favor experienced and AI-fluent candidates, further narrowing opportunities for newcomers. Despite AI adoption remaining modest across all companies, its impact is outsized in junior tech roles, where even a small shift in hiring practices can leave thousands unemployed.

Gen Z’s College Skepticism and Career Pivot

Faced with rising joblessness and mounting student debt, many Gen Z Americans are questioning the value of traditional four-year college degrees. The Goldman Sachs report and supporting industry analysis highlight a growing trend: young people are turning away from expensive, often outdated academic programs and seeking out vocational training or blue-collar trades. This pivot is fueled by skepticism about whether a degree genuinely secures a tech career or simply leads to more debt. As the AI revolution shrinks the entry-level pipeline, the promise of “learning to code” as a ticket to prosperity rings hollow for many. Instead, practical skills, adaptability, and trades are gaining new respect among frustrated job seekers who see traditional institutions failing to deliver real opportunity.

Educational institutions now face mounting pressure to reform curricula that have not kept pace with workplace demands. Critics argue that colleges have prioritized ideological agendas and administrative bloat over teaching skills that resist automation. With fewer junior tech jobs available and the market demanding AI-savvy talent, schools must adapt or risk becoming irrelevant to a generation that wants tangible returns on its investment. The shift away from college pathways is no longer just a cultural talking point—it’s a survival response to a disrupted labor market.

Industry and Policy Reactions: A Call for Adaptation

Industry experts and economists warn that unless education and workforce policies adapt swiftly, the AI-driven displacement of Gen Z could have lasting generational consequences. Some analysts maintain that while AI may eventually create new job categories, the short-term pain for young workers is acute and widespread. Calls are intensifying for large-scale retraining and upskilling initiatives, yet there is little consensus on how to fund or implement such programs effectively. Policymakers face mounting pressure to address youth unemployment, reform higher education, and stem the broader social and economic fallout. Meanwhile, the tech industry’s dependence on automation continues to grow, with executives showing little interest in preserving entry-level roles that can be replaced by machines. As Gen Z pivots to alternative careers and trades, the composition of America’s workforce is undergoing a historic shift—one driven not by choice, but by the relentless advance of artificial intelligence.

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

The debate over how to protect and empower America’s next generation of workers is only beginning. For conservative Americans concerned about family security, personal responsibility, and the value of real work, this wave of AI-driven disruption highlights the urgent need for common-sense reforms in education and industry alike. Without decisive action, a generation risks being left behind by policies and priorities that don’t align with the realities of today’s labor market.

Sources:

Top economist warns Gen Z tech workers could be first to lose jobs to AI

Goldman Sachs economist warns Gen Z tech workers are 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