The unemployment in the Tech sector is expanding and most employees are replaced by artificial intelligence.
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Artificial intelligence is no longer just a spectacular technological innovation, but an economic force that remodels the labor market in the United States, starting from the place where it was created and developed because young employees in the technological sector are the first to feel the effects. According to a report published by Goldman Sachs on Tuesday, the share of Tech engages reached a peak in November 2022 (“Coincidence or not, exactly the month of Chatgpt launch”) to subsequently fall below the historical average, writes Business Insider.
“It is true that the AI begins to be seen more and more clearly in the economic data.”wrote Jan Hatzius, Goldman Sachs chief economist, warning that “The unemployment rate in the 20-30 -year -old segment has increased by almost 3 percentage points.” that is, more than four times more than the average in the economy.
In the long term, the bank estimates that between 6 and 7% of the US workforce could be replaced by AI. However, the maximum impact on general unemployment could be “Managing” If other industries will absorb some of the affected employees.
In five years AI could remove half of entry-level jobs
The decline comes against the background of an increasingly fragile work market. In July, the US economy created only 73,000 new jobs, well below the expectations of over 100,000. “The growth rate of the American economy is approaching the stagnation area, a level below which the labor market deteriorates ”explained Hatzius, adding that “The real available income and consumption are expected to advance slowly ”.
The alarm signals also come from the area of AI companies. In May, Dario Amodei, CEO of Anthropic, estimated that in the next five years, “Artificial intelligence could eliminate up to 50% of office jobs intended for career employees, such as Junior Software Developer, Assistant Marketing, Junior Analyst, Debtant Accountant or Specialist Support”.
