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Key Takeaways
- Workers displaced by shrinking industries may need a month longer to find work than their counterparts, according to a Goldman Sachs report.
- Once those workers land a full-time job, their earnings may also be impacted, especially if they’re older, the analysis found.
If AI comes for your job, how long of a recovery should you expect?
Workers in industries disrupted by artificial intelligence (AI) may require an average of one month longer than others to find work, according to research Goldman Sachs published this month. Generally, unemployed workers are out of a job for a median of 11.4 weeks, according to the most recent Bureau of Labor Statistics data.
Workers displaced from shrinking fields may also see less income once they return to work. Their earnings may decline more than 4%–or double the rate of other displaced workers–when they do land a full-time role, Goldman Sachs analysts said. Their analysis was based on outcomes for workers in “disrupted occupations”—those in the bottom quintile of employment growth—from 1990 to 2024, excluding the Great Recession.
Why This News Matters to Consumers
Experts believe employers will seek out workers who know how to use AI. If you’re worried about job security, it may be wise to explore how the technology can speed up or otherwise enhance your work.
“Workers displaced from occupations with contracting employment faced significantly higher probabilities of long-term unemployment, indicating greater difficulty re-entering the labor market and increased risk of permanent career disruption,” the report said.
As more employers adopt AI, concerns are growing about job losses. Some 6% to 7% of U.S. workers may be displaced by AI in the next decade, Goldman Sachs estimates. The shift could be particularly challenging for those 55 or older, given prior periods of disruption, Goldman Sachs said.
Another at-risk group may be those who work under supervisors and struggle to use AI, the Federal Reserve Bank of St. Louis said.
“Skilled workers” who harness AI to become more efficient may become so valuable that employers “eliminate conventional jobs so as to allow the skilled labor previously engaged in supervision to engage in more productive activity,” the Fed said in an analysis published this month.
