Goldman Sachs Warns AI Cuts Could Slash Wages 10% Over Decade
Goldman Sachs is warning that AI-driven job losses could leave lasting economic damage, but the biggest risk may not fall where many expect.
According to a new Goldman analysis of 40 years of labor data, workers displaced by technology face years of lower pay, slower career growth, and delayed wealth-building. Some see earnings growth fall by nearly 10 percentage points over a decade, with lasting instability in employment.
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The tension is generational. While Gen Z has been widely viewed as the most vulnerable to AI disruption, Goldman’s data suggests younger workers may actually recover faster due to flexibility and skill adaptation.
At the same time, separate findings show entry-level roles often filled by Gen Z are already being cut, with AI contributing to roughly 16,000 net job losses per month in the U.S.
That split creates a growing divide: younger workers are hit first, but older workers may suffer longer.
According to Goldman Sachs, the real long-term risk may fall on workers with less mobility and outdated skills.
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