AI Cuts U.S. Payroll Growth by 16,000 Jobs as Younger Workers Face Longer Unemployment
Updated
Updated · KATU · Nov 14
AI Cuts U.S. Payroll Growth by 16,000 Jobs as Younger Workers Face Longer Unemployment
3 articles · Updated · KATU · Nov 14
Summary
Goldman Sachs estimates AI shaved about 16,000 jobs from monthly U.S. payroll growth over the past year and added 0.1 percentage point to unemployment, signaling a hiring drag more than a wave of direct layoffs.
More than 15,000 displaced workers studied from 2016 to 2025 showed those most exposed to AI took about one month longer to find work and were roughly 10 percentage points more likely to still be unemployed a year later.
A Cleveland Fed study found job-finding rates in the most AI-exposed occupations fell about 6 percentage points more than in the least exposed ones after late 2022, with workers ages 23 to 30 hit hardest.
That gap could stretch average unemployment spells from about 10.5 weeks to more than 13 weeks, raising concerns that automation is eroding entry-level roles that younger workers traditionally use to enter careers.
The broader picture remains mixed: Goldman sees 6% to 7% of U.S. workers potentially displaced over the next decade, even as AI also creates some complementary jobs rather than simply replacing workers.