AI is eliminating jobs in the U.S., especially for young tech workers just starting in their careers.

A Goldman Sachs report shared by Business Insider on Monday noted that since the introduction of ChatGPT in November 2022, the tech sector’s share of U.S. employment has been decreasing after reaching a peak.

The report highlighted a significant rise in unemployment for 20- to 30-year-olds pursuing tech careers. Since early 2024, their unemployment rate has surged nearly 3%, a rate over four times that of the general population. Goldman Sachs attributes this increase to AI beginning to dominate white-collar roles, especially at entry levels.

In the note, the bank’s Chief Economist, Jan Hatzius, projected that AI might replace 6% to 7% of U.S. workers over the coming decade. Nevertheless, he anticipated the unemployment rate to increase by only a “manageable” 0.5%, as displaced workers would transition to other sectors.

AI’s impact isn’t limited to rising unemployment in tech; it’s also triggering substantial layoffs. According to a report released by Challenger, Gray & Christmas, more than 27,000 private-sector jobs have been cut due to AI since 2023, as reported by CBS.

“The industry is being reshaped by the advancement of artificial intelligence,” Challenger, Gray & Christmas told CBS.

Tech executives are raising concerns about AI’s potential to displace jobs. In May, Dario Amodei, CEO of AI startup Anthropic, forecasted that AI might eliminate half of all entry-level office jobs and push unemployment rates up to 20%.

AI will affect white-collar industries like technology, law, and finance, Amodei said.

Geoffrey Hinton, a Nobel laureate and revered figure in AI known for his groundbreaking work on neural networks, echoed this sentiment in June, predicting that “AI is just going to replace everybody” in white-collar roles.

“I think for mundane intellectual labor, AI is just going to replace everybody,” Hinton said at the time.

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