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Goldman Sachs links AI adoption to hiring slowdown in four major economies
- Goldman Sachs Research found AI adoption has reached 15–20% in France, the U.S., the Netherlands and the U.K., slowing hiring in exposed sectors.
ndtvprofit+1 - U.S. call-centre employment is 39% below its long-run trend, with Canada and Germany also significantly below historical norms, the report said.
bignewsnetwork+1 - Economy-wide effects remain limited, but junior and entry-level workers face disproportionate pressure as firms automate tasks once assigned to newer hires.
ndtvprofit+1
Artificial intelligence adoption has reached 15% to 20% across major developed economies, and the shift is already dragging down hiring in technology-intensive sectors, according to a new report from Goldman Sachs The Goldman Sachs Group, Inc. Research published this weekend.
France, the United States, the Netherlands, and the United Kingdom sit at the upper end of that adoption range, while major emerging markets trail at roughly 10% to 15%. The report found that job openings in industries most vulnerable to automation began slowing in the second half of 2022, with the trend most pronounced in Germany, Australia, and the US.ndtvprofit+1
Call Centres and Tech Bear the Brunt
The hiring pullback has hit call centres, software publishing, consulting, and advertising hardest. US call-centre employment now sits 39% below its long-run trend, with Canada and Germany 33% and 27% below trend, respectively. Employment in US information and communication services has also fallen below historical norms, though comparable sectors in several other developed economies have held closer to or above trend.newsbytesapp+2
"These patterns suggest tech sector (broadly defined) hiring headwinds are global in nature," the report stated. "Although outright negative impacts are most compelling in the US."bignewsnetwork
Narrow Impact — For Now
Despite the sector-level disruptions, the report's economy-wide findings are more measured. Across more than 800 occupations evaluated in the US, France, and Canada, a 10% occupational exposure to AI corresponded to only a 0.1-percentage-point reduction in annual headcount growth.ndtvprofit+2
Entry-level and junior workers, however, face disproportionate pressure as firms automate tasks traditionally assigned to newer hires.newsbytesapp+1
"AI-related hiring headwinds are clearly visible in official and unofficial employment data," the report concluded. "But impacts are limited to a narrow set of industries and workers."bignewsnetwork
Sources (4)
- 1 AI’s Hiring Freeze? Why 20% Adoption In Just Four Nations Is Dragging Tech Headcount www.ndtvprofit.com
- 2 Only four countries lead global AI adoption by 20%, muting hiring in tech and services: Goldman Sachs www.bignewsnetwork.com
- 3 US, UK, France lead AI adoption at 15-20%: Goldman Sachs www.newsbytesapp.com
- 4 Hiring Slowed Down: AI Adoption at 20% Slows Hiring in Tech and Call Centres | 📲 LatestLY www.latestly.com
