As artificial intelligence reshapes industries at breakneck speed, young tech workers may be the first to face its disruptive force. Joseph Briggs, a senior economist at Goldman Sachs, has warned that Gen Z professionals, especially those in junior tech roles, are at the frontlines of job displacement as companies rapidly automate entry-level tasks. His comments align with rising unemployment data and massive layoffs in 2025, painting a troubling picture for the next generation of coders and engineers.Although AI adoption is still in its early stages, its impact is already visible. Companies are using generative AI to perform routine tasks, reduce overheads, and restructure departments, often starting with roles filled by recent college graduates. For Gen Z, the AI revolution may feel less like an opportunity and more like an existential threat.
AI, layoffs, and shrinking career pathways for Gen Z
According to data from Goldman Sachs, unemployment among tech workers aged 20 to 30 has increased by around 3 percentage points since early 2025. This spike is notably higher than that of older workers or younger professionals in other sectors. The tech industry alone has seen over 50,000 layoffs this year, with Microsoft, Meta, and Google among the biggest contributors. Many of these cuts are linked to AI taking over repetitive or entry-level tasks traditionally assigned to junior employees. Job listings for such roles have also fallen sharply, with US postings down 35 percent since 2023. Despite only about 9 percent of companies currently using AI in core production, the roles being targeted are precisely those that younger workers usually fill. This is making it significantly harder for recent graduates to enter the field or gain upward mobility. Nearly half of Gen Z job seekers now believe that AI has diminished the value of their college degrees, raising questions about the future of traditional education in a rapidly evolving job market.
Economic uncertainty compounds AI disruption
While AI is often blamed for job losses, some economists argue the picture is more complicated. Brad DeLong, a leading economic historian, suggests that weak productivity growth, economic uncertainty, and policy inertia are also playing a major role in reducing hiring. Companies are moving cautiously in the current climate and may be using AI as a convenient justification for limiting headcount. This has created a difficult environment where job creation is slow, but firing is also restrained. As a result, young professionals are stuck between shrinking opportunities and elevated expectations. Federal Reserve data backs this up, showing an unemployment rate of around 5.8 percent for recent college graduates and about 6.9 percent for young workers overall, many of whom are now underemployed. These structural challenges suggest that the Gen Z workforce is entering a transformed labor market, where adaptability, emotional intelligence, and hands-on problem-solving may be just as vital as technical proficiency.
