Goldman: Junior white-collar workers squeezed hardest by AI hiring slump

Artificial intelligence (AI) is having a disproportionate impact on junior white-collar workers, according to a Goldman Sachs study. The research reveals a widening gap between entry-level employees and their more experienced colleagues in industries such as consulting and advertising. Goldman analyzed employment data across more than 800 occupations and found that AI-related hiring pressures were most severe among junior workers, while the overall labor market's effect remained relatively minor.

The findings highlight concerns about the traditional route into City and professional services careers, as junior staff have often performed research and administrative tasks that AI can now carry out more efficiently. Industries with greater exposure to AI automation, including management consulting, advertising, software publishing, and call centers, have experienced weaker growth in job openings since late 2022, falling below their historic employment trends.

Information and communications services, another heavily exposed sector, have seen employment growth slow across most major developed economies since 2022. The overall workforce experienced only a minor drag on annual headcount growth when exposed to AI, with entry-level workers facing a more significant impact. Despite these challenges, some UK businesses are embracing AI, with 54% creating new roles and 21% introducing dedicated AI positions.

However, only 58% plan to increase spending on AI skills, and about a third believe their workforce lacks the necessary capabilities to utilize the technology effectively.