Gen Z workers are being replaced by AI by the thousands, according to new data.
Detailed in Fortune, Goldman Sachs published new research on the impact of AI on the workforce, and the news may trouble those in their early careers. The report shows that AI is steadily replacing 16,000 roles each month. This influx has taken away opportunities in an already struggling market.
Economists at Goldman examined occupations in which AI can heavily substitute primary responsibilities. They developed a new framework to determine which roles are most affected by AI substitution and augmentation since the launch of ChatGPT.
While its widespread use has led to other job curations, often helping employees streamline certain work duties, AI’s implementation has also eliminated entry-level roles. Specifically, these numbers are even higher overall, averaging 25,000 jobs per month over the past year.
However, Goldman economists also determined that 9,000 new roles were created through augmentation, which led to the smaller estimate. AI-driven infrastructure will require more personnel for data centers and construction, as well as labor-intensive roles to expand into new markets. Despite this, the roles AI takes away greatly outweigh the new ones offered, creating unemployment gaps.
The findings concluded that unemployment rates differed widely between entry-level and upper-level workers in these fields. AI implementation also widened the wage gap for these employees across professions.
The Fortune article noted that a 1-standard-deviation increase in AI substitution translated into an average 3.3 percentage-point increase in these wage gaps. This leaves Gen-Z workers at a particular disadvantage as advanced tech establishes itself across various professions.
Students are already taking note of market shifts, even basing their degree choices on AI. Covered on BLACK ENTERPRISE, more co-eds are choosing degrees that are less likely to rely on automation for duties, securing their place in the future workforce through “AI-resilient” sectors such as nursing or early childhood education.
Despite the drawbacks, Fortune noted that Gen-Z still has some leverage in the evolving workforce. The generation is most familiar with advanced technology. This technological literacy will help them gain a leg up over older employees who may lack some technological savviness.
While AI has a polarizing impact on the future of job growth, it remains important for Gen Z workers to strengthen their skills with the tech. As various industries continue to fast-track integration, further knowledge could very well benefit early professionals’ futures.