AI Will Take Their Jobs First: Gen Z Tech Workers on the Firing Line
August 7, 2025
A sobering forecast from Goldman Sachs, usually associated with financial markets, signals growing alarm: Generation Z tech workers, particularly those in junior roles, are emerging as the most vulnerable group as artificial intelligence reshapes the labor landscape.
Gen Z at the Forefront of Disruption
Joseph Briggs, Senior Global Economist at Goldman Sachs Research, delivered a blunt warning during a recent episode of the bank’s “Goldman Sachs Exchanges” podcast: Gen Z tech professionals—those aged about 20 to 30—are being displaced first by AI-powered automation of entry-level tech tasks.
Briggs highlighted a sharp uptick in unemployment among this cohort, with the Gen Z tech unemployment rate climbing nearly 3 percentage points since early 2024—more than four times the increase seen in the broader national jobless rate.
Despite AI adoption still being in early stages—only about 9% of firms are regularly using AI in production tasks—Briggs said this is already enough to disrupt hiring patterns in the tech labor market. Notably, many larger tech firms such as Microsoft and Google have cut thousands of tech roles, redirecting investments toward AI and efficiency tools.
The Data Behind the Concern
Goldman Sachs’ analysis underscores how entry-level job postings in tech have dropped by about 35% since 2023, and nearly 47% of Gen Z job-seekers feel their degrees are being devalued by AI advancements.
Low-volume hiring and slow expansion, combined with automation, is creating what Briggs describes as a “low-hiring, low-firing” market—essentially a choked pipeline for new talent.
Meanwhile, Goldman Sachs forecasts that generative AI could displace 6–7% of the total U.S. workforce over the next decade, though the bulk of displaced workers may be reabsorbed by other industries, limiting peak overall unemployment to about 0.5 percentage point.
Broad Industry Reactions and Gen Z Anxiety
Goldman’s warning comes amid growing unease among Gen Z professionals. A recent survey by job platform Zety reveals that 72% of Gen Z workers fear AI will eliminate entry-level corporate roles within five years, sparking a shift in career plans: 43% are pursuing additional certifications, and 29% are exploring entirely new industries—especially blue-collar or people-centric professions, considered more resilient.
Even industry veterans like Bill Gates caution that familiarity with AI tools may not guarantee job security. In a CNN interview, he emphasized that adaptability and broader skill sets are critical, as AI continues to advance rapidly.
What’s Driving the Differential Impact?
Several factors explain why Gen Z tech workers face disproportionate threats:
Junior roles often involve repetitive coding, testing, and support tasks, precisely those being automated by AI.
Firms are securing cost savings by reducing early-career headcount, especially when AI can supplement or outperform trainees at scale.
Economic uncertainty and cautious hiring strategies post-pandemic have slowed recruitment cycles, leaving fewer openings for rookies.
Conversely, more experienced tech professionals—those engaged in leadership, innovation, or high-complexity engineering—are less susceptible to automation in the near term.
What Lies Ahead: Risk, Mitigation, and Opportunity
Risks are real and growing. Gen Z tech workers represent a talent pipeline that employers may be shutting off prematurely. If hiring doesn’t rebound, industries could face future skill shortages with fewer mid-level and senior professionals emerging.
Mitigation will require active response:
Upskilling and reskilling efforts are urgent—Gen Z professionals and institutions must pivot toward areas AI struggles with, such as human-centric design, system-level problem-solving, and ethical oversight.
Policy interventions, including unemployment support and retraining programs, will be essential to reduce disruption—especially for entry-level cohorts.
Broader workforce planning by companies should balance AI-driven efficiency with long-term talent development needs.
Opportunities remain—not all doom and gloom. As AI drives routine automation, the workplace may evolve to value soft skills, creativity, leadership, and adaptability even more. Workers who can complement AI rather than compete with it may find new avenues for growth.
Final Takeaways
Goldman Sachs’ warnings spotlight a turning point: Gen Z tech workers are facing AI’s earliest and sharpest employment consequences. While large-scale adoption is still nascent, the early indicators—unemployment spikes, job posting declines, and shifting sentiment—are clear.
As artificial intelligence continues to expand its capabilities, the most vulnerable workers are those just beginning their careers. The combination of introspection, innovation, and policy support will determine whether this generation adapts and thrives—or becomes sidelined by the very technology it helped build.