In a stark assessment that has sent ripples through economic circles, Goldman Sachs economists have painted a grim picture for Generation Z, suggesting that the rise of artificial intelligence and automation could lock them into a cycle of “jobless growth” for the foreseeable future. According to a recent report highlighted by Futurism, the investment bank’s analysis of global trends indicates that economic expansion is increasingly decoupled from job creation, leaving younger workers to bear the brunt of technological disruption.

This phenomenon, where productivity surges without corresponding employment gains, isn’t new, but AI’s acceleration is making it the default mode. The economists point to historical patterns, such as those following the 2008 financial crisis, but argue that generative AI tools are supercharging this shift, automating routine tasks across sectors like finance, retail, and manufacturing.

The AI-Driven Job Squeeze

Goldman Sachs’ own initiatives underscore this reality. As detailed in a Goldman Sachs insights page, the firm has been aggressively integrating AI, including rolling out an internal “GS AI assistant” to thousands of employees, as reported by Futurism earlier this year. This move is part of a broader strategy to achieve efficiency gains, but it comes at a human cost—potentially displacing roles that once served as entry points for young professionals.

Critics, including labor economists, worry that Gen Z, already navigating student debt and housing affordability crises, will face diminished opportunities. A 2023 Goldman Sachs report, accessible via GS Publishing, estimated that AI could affect up to 300 million jobs globally, with white-collar sectors hit hardest—a forecast echoed in Forbes.

Reskilling as a Lifeline?

Yet, not all is doom and gloom in the bank’s outlook. Chief Information Officer Marco Argenti, in predictions shared on Goldman Sachs’ site, envisions a “hybrid workforce” where AI augments human roles, potentially creating new positions in AI oversight and ethics. This could offer Gen Z a path forward, provided they adapt through continuous learning.

However, the timeline for such benefits remains uncertain. Recent news from CNBC notes Wall Street’s rapid AI adoption, with Goldman Sachs leading the charge, but this has led to job cuts, including planned reductions in 2025 as part of its “OneGS 3.0” initiative, per Tekedia.

Broader Economic Implications

The disconnect between growth and jobs could exacerbate inequality, with AI benefits accruing to capital owners rather than workers. Goldman Sachs’ 2023 update on AI’s growth effects, found at GS Publishing, suggests generative AI might boost global GDP by 7% over a decade, but only if innovation accelerates— a big if for those entering the workforce now.

Gen Z’s response, from upskilling in tech to advocating for policy changes like universal basic income, will be crucial. As Reddit’s Futurism community discussions highlight, many young people are already bracing for this reality, blending optimism with pragmatism.

Policy and Adaptation Challenges

Governments and educators must step up, argues Argenti in his AInvest interview, by fostering AI literacy from an early age. Without intervention, the jobless growth model could entrench generational divides.

In the end, while AI promises efficiency, its uneven distribution of gains poses profound questions for society. Goldman Sachs’ warnings serve as a call to action, urging a reevaluation of how we prepare the next generation for an automated world.