Featured Image Credit: Getty Stock
Topics: News, Money, World News, Artificial Intelligence
Kit Roberts
Topics: News, Money, World News, Artificial Intelligence
Goldman Sachs has issued a warning about the future of the job market as AI begins to have an impact.
The finance giant spoke about the rising influence of AI and the effect that this is having on the job market, in particular for people who work in technology.
And the upshot is that it's not looking great for the industry.
March saw employers in the US announce a massive 60,620 job losses, which represented 25 percent more than in February.
Advert
While there are lots of factors currently putting strains on the job market, of those losses in March, AI was connected to around a quarter of them, so it's having a big impact.
But Goldman Sachs strategist Pierfrancesco Mei has said that even though the initial job losses are already bad, the effect of AI on the job market may also last beyond the more short term effect of there not being as many jobs.
Goldman Sachs warned that people who find themselves losing their job for reasons related to AI may also find it more difficult to actually find their way back into work because their skills are no longer as valuable in the job market, the Wall Street Journal reported.
Multiple large technology companies have also announced big rounds of layoffs.
Meta, which owns Facebook, WhatsApp, and Instagram, has announced a round of redundancies.
Technology and online retail business Amazon has also confirmed that it will also be axing thousands of jobs in corporate.
Meanwhile on March 31 software company Oracle announced that it would be cutting 10,000 jobs in one morning as part of a 30,000 job cuts around the world.
Block, a payments company which was founded by Jack Dorsey, formerly of Twitter, has cut 40 percent of people working there.
Atlassian has also confirmed that it intends to put more emphasis on AI, and has cut approximately 10 percent of its workforce.
One website, layoffs.fyi, has estimated that the total number of tech layoffs in the past year is around 165,000.
Mei explained that it both takes people longer to find a new job, and they are more likely to take a pay cut when they do find one.
He wrote: "They take approximately one month longer to find a new job and suffer real earnings losses of more than three percent upon re-employment, compared with negligible losses for workers displaced from more stable occupations."
This is because people may find themselves forced to take a lower position, as their skills are no longer as valuable.