Goldman Sachs reports that workers displaced by AI face longer job searches compared to those in roles not affected by the technology. On average, displaced employees take one month longer to find new employment, with the gap widening based on age.
Workers aged 35 and older experience a delay of approximately 5 weeks in returning to full-time work, while those under 35 face a 3-week delay. Historical data indicates that reemployed workers often see a 3% reduction in real earnings and 10 percentage points slower earnings growth.
The bank has revised its long-range forecast, projecting that up to 9% of the US workforce, or about 15 million people, could be displaced over the next decade. This estimate assumes a 15% productivity gain from AI in advanced economies, up from a previous projection of 6-7%.
Labor market data from September 2026 shows that AI was cited in 21% of all layoff announcements, with the tech sector accounting for 29% of total cuts. The current environment is characterized by low hiring and firing rates, masking the impact of AI on specific skill sets.
