Goldman Sachs Finds Job Growth in Some Fields Slowed by 39% Due to AI

AI is beginning to weigh on labor markets across major developed economies, with the effects varying by industry and seniority level, according to new research from Goldman Sachs.

CNBC reports that the Wall Street investment bank found that industries with greater exposure to AI automation have generally seen slower job openings growth since the second half of 2022. That relationship is particularly pronounced in Germany, Australia and the United States, Goldman said in a report published this week.

Employment in information and communication services, among the industries most exposed to AI, has slowed across nearly all major developed economies according to the report. Outside the U.S., though, employment in these industries remains near or above its long-run trend.

Goldman found a similar but generally more muted pattern of employment headwinds in other developed markets. Employment in call centers, software publishing, management consulting and advertising services has fallen sharply below its historical trend across developed markets.

Call centers stand out in the data. Employment in the industry is now 39 percent below trend in the U.S., 33 percent below trend in Canada and 27 percent below trend in Germany, the report found. Goldman said this pattern shows that AI-related employment pressures are already visible in industries where tools capable of automating work are available.

The effects appear more pronounced for workers just starting their careers. Goldman analyzed employment growth across more than 800 occupations and found that AI-related headwinds were strongest among entry-level workers. The bank also identified a smaller negative effect among occupations considered to carry a high risk of displacement from AI.

Goldman concluded that AI-related hiring pressures are clearly visible in employment data globally but remain limited to a relatively narrow set of industries and workers.

The labor market findings come as AI adoption continues to spread across developed economies. Goldman combined 11 surveys measuring AI adoption across countries and found that major developed markets have adoption rates of roughly 15 percent to 20 percent.

France, the U.S., the Netherlands and the U.K. are leading in AI adoption, the report said, while Italy, Japan and New Zealand were among the developed economies with lower adoption rates. Major emerging markets had estimated adoption rates of between 10 percent and 15 percent.

AI’s impact on the economy is uneven, but its momentum continues to build, making it vitally important that conservatives understand both its potential benefits and landmines. Breitbart News social media director Wynton Hall has written his instant bestseller Code Red: The Left, the Right, China, and the Race to Control AI to serve as the definitive guide on how the MAGA movement can create positions on AI that benefit humanity without handing control of our nation to the leftists of Silicon Valley or allowing the Chinese to take over the world.

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