Goldman says AI layoffs are starting to leave a ‘long-lasting’ scar, just like the last 40 years of history
Workers 35 and older are taking the biggest hit, as finding a job takes about five weeks longer—and that's an AI-exposed job, too.
Goldman Sachs has identified a concerning trend in the aftermath of AI-driven job losses, finding that the initial wave of workers displaced from AI-exposed jobs in 2025 are experiencing difficulties similar to those from previous technological disruptions over the past four decades. Eeconomist Pierfrancesco Mei discovered that these displaced workers took about a month longer to find new employment compared to others, and were 10 percentage points more likely to remain unemployed a year later.
These impacts are comparable in magnitude to earlier waves of technological change, Mei noted, describing the damage as "long-lasting." Older workers, aged 35 and above, faced longer reintegration periods, with a five-week delay compared to other displaced workers, while those under 35 experienced a three-week gap. The broader government data corroborates this, showing that those displaced between 2023 and 2025 had a lower rate of returning to full-time work by January 2026 compared to previous age groups.
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