{"id":5998,"date":"2025-10-16T16:26:44","date_gmt":"2025-10-16T16:26:44","guid":{"rendered":"https:\/\/musictechohio.online\/site\/goldman-sachs-genz-automation\/"},"modified":"2025-10-16T16:26:44","modified_gmt":"2025-10-16T16:26:44","slug":"goldman-sachs-genz-automation","status":"publish","type":"post","link":"https:\/\/musictechohio.online\/site\/goldman-sachs-genz-automation\/","title":{"rendered":"Goldman Sachs Says Gen Z Is Pretty Much Permanently Screwed"},"content":{"rendered":"
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For any young job seekers struggling in today\u2019s horrible labor market, experts working for one of the wealthiest companies in the world have a little tough love for you: you\u2019re pretty much cooked, fam.<\/p>\n

In an analysis of recent economic trends in the US, Goldman Sachs economists David Mericle and Pierfrancesco Mei wrote that \u201cjobless growth\u201d is pretty much the new normal.<\/p>\n

\u201cThe modest job growth alongside robust GDP growth seen recently is likely to be normal to some degree in the years ahead,\u201d Mei and Mericle said, according to Fortune<\/em><\/a>, which obtained the note. The two expect that the majority of GDP growth will come from productivity gains boosted by AI progress, with only a \u201cmodest contribution\u201d from labor supply growth, or the increase in available workers.<\/p>\n

\u201cHistory also suggests that the full consequences of AI for the labor market might not become apparent until a recession hits,\u201d they added. When it comes to tech innovation, \u201csome transitional friction has been normal historically, and is certainly possible in the future.\u201d<\/p>\n

The effect of all this, Fortune <\/em>observes, is that hiring in every industry except healthcare has turned net on negative over the past few months, as executives and management teams double down on AI in order to streamline operations and cut out expensive overhead \u2014 in the form, mainly, of paychecks.<\/p>\n

This unfortunate insight piggybacks off Federal Reserve Chair Jerome Powell\u2019s comments in September,<\/a> when he said the labor market had become \u201clow-hire, low-fire.\u201d Powell\u2019s insight: \u201ckids coming out of college and younger people, minorities, are having a hard time finding jobs.\u201d<\/p>\n

It\u2019s a bitter pill to swallow, but there\u2019s also plenty of reason to be skeptical of all the AI doomsaying.<\/p>\n

Yes, it\u2019s true that hiring has slowed to a crawl \u2014 one report found<\/a> that hiring in the US is now the slowest its been since 2009, when the economy was still in the throes of one of the worst financial disasters in history. However, economists are nowhere near a consensus on the cause, and AI is more likely a scapegoat than a culprit.<\/p>\n

For example, as the Goldman Sachs analysts noted, AI\u2019s overall impact on the macroeconomy is still limited, a conclusion also put forward<\/a> by the Yale Budget Lab. Given the hundreds of billions of dollars invested into AI so far, investors clearly expect to see an unprecedented shakeup<\/a> of the US economy \u2014 if the AI revolution comes to pass.<\/p>\n

But at the moment, prospects for that new technological epoch look dim. AI is far from the golden goose business executives assumed it would be, failing at 95 percent<\/a> of the companies that roll it out. After betting the farm on AI to automate its workers, company<\/a> after company<\/a> has eaten crow, either being forced to hire back their workers, or scrap their AI programs in favor of outsourced labor<\/a>.<\/p>\n

In each case, the real issue isn\u2019t AI\u2019s purported ability<\/a> to do everyone\u2019s job, but the same old class of ruling elites who\u2019ve always fought tooth and nail<\/a> to keep every penny which they\u2019ve never toiled to earn in the first place.<\/p>\n

More on automation: <\/strong>Data Shows That AI Use Is Now Declining at Large Companies<\/a><\/em><\/p>\n

The post Goldman Sachs Says Gen Z Is Pretty Much Permanently Screwed<\/a> appeared first on Futurism<\/a>.<\/p>\n<\/div>\n

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