Goldman says AI hiring slump hits junior white‑collar workers hardest

Goldman Sachs has released a study indicating that artificial intelligence is most acutely reducing hiring for entry‑level white‑collar positions. By analysing more than 800 occupations, the Wall Street bank found AI‑related hiring pressures are strongest among junior staff, while the overall impact on the broader labour market remains modest.

AI’s bite is felt most by newcomers

The report highlights a growing divide between newcomers to fields such as consulting, advertising and software publishing and their more senior colleagues. Jobs that traditionally involved research, data gathering and routine administration are now increasingly performed by generative AI tools, leaving fewer openings for fresh graduates.

Industries with higher exposure to AI automation, notably management consulting, advertising, software publishing and call centres, have seen job‑opening growth lag behind historic trends since the second half of 2022. The broader information and communications services sector, also highly exposed, has experienced a slowdown in employment growth across most major developed economies.

UK labour market shows further signs of strain

In the United Kingdom, the labour market is losing momentum. Vacancies fell to 707,000 in the three months to July, the lowest level in more than five years, according to the Office for National Statistics. Payroll employment dropped for a sixth consecutive month, and private‑sector wage growth slowed to 2.8 per cent, its weakest pace since October 2020.

Goldman’s analysis does not attribute this broader slowdown to AI. The bank concludes that the technology’s employment effects remain concentrated in a relatively narrow set of industries and roles.

What comes next for workers and firms?

Despite the limited overall impact, the study notes that a 10 per cent occupational exposure to AI correlates with a 0.1 percentage‑point drag on annual headcount growth in the United States, France and Canada. For entry‑level workers the drag is larger, more than 0.2 percentage points in the US and over 0.6 points in Australia.

In the UK, adoption of AI is among the highest in the developed world, alongside the United States, France and the Netherlands, according to eleven surveys compiled by Goldman. A separate Lloyds Business Barometer survey found that 54 per cent of UK firms say AI has created new roles, while 21 per cent are adding dedicated AI positions.

Businesses would need to build the “skills, culture and confidence” to use AI effectively.

Amanda Murphy, chief executive of Lloyds Business and Commercial Banking, echoed the need for upskilling as companies plan to increase AI‑related training spend over the next year, even though nearly a third admit their workforce lacks the necessary capabilities.

Looking ahead, firms may intensify internal training programmes and seek to retain junior talent through clearer career pathways, while job seekers in affected sectors might need to diversify their skill sets to stay competitive.