“Growth without jobs is the new normal”

Generation Z has had a incorporation into the labor market really bumpy. Their last years of training and internships were marked by the isolation caused by the pandemic and, when it already seemed that they were going to be able to return to their first jobs normally, the adoption of AI has put them on the tightrope again.

According to a new report from Goldman Sachs has had access FortuneGeneration Z is at a strange crossroads of economic prosperity for companies and unemployment for them.

USA: the canary in the mine. The American labor market is experiencing a profound change which especially affects young people of generation Z, who are looking for their first job in an increasingly complicated environment. It is no coincidence that the first symptoms of impact of AI in the workplace arise in the US since it is the country with greater implementation of AI with 1.2 million companies that are already using AI in some of their processes. Its effects are the canary in the mine for the rest of the economies.

In this context, US companies are already They don’t offer as many opportunities. jobs for newly graduated employees as before, and analysts warn that this “jobless growth” scenario will be the new normal for years to come.

Soaring economy, stagnant jobs. At this moment, the Stanford research show that generation Z has 13% more difficulty accessing certain jobs, even when the economy continues to grow in terms of Gross Domestic Product (GDP).

Goldman Sachs experts David Mericle and Pierfrancesco Mei emphasize that this economic growth reflected by GDP does not translate into more jobs, especially for young people who start their professional career who are seeing how AI has taken on tasks that until now were part of your job learning process. That is, companies earn more, with less staff.

The perfect storm for generation Z. According to report data ‘2025-2026 Hiring Benchmark Report‘ prepared by Criteria, human resources managers agree that 92% of young people from generation Z are not prepared for the current demands of the labor market. Although these young people are skilled in using technology and digital tools, companies demand highly qualified and experienced professionals. Something they have not yet had the time (or opportunity) to acquire.

On the other hand, automation and mass adoption of artificial intelligence are causing “the modest employment growth along with the strong GDP growth observed recently is likely to normalize to some extent in the coming years.” This diagnosis implies that the majority of new jobs that emerge will be closely linked to high-level technological profiles, while opportunities for young people without experience continue to decline.

Productivity and employment have let go of each other’s hands. According to the authors of the Goldman Sachs study, the economic boost to the US GDP is supported above all by the productivity that artificial intelligence is already beginning to provide. However, the new job creation data They are not on the same ascending line.

The information They show that in almost all sectors (less in health), job creation is “weak, null or negative”, with managers opting to automate tasks and reduce labor costs permanently.

Generation Z in a delicate situation. The conclusion of the Goldman Sachs analysts is clear: “History also suggests that the full consequences of AI for the labor market may not be evident until a recession hits,” at which point the generation Z would be the most vulnerable to any financial shock.

Given that, although it is true that the data confirms that there are not large rounds of layoffs (at least not as many like in 2023), No new vacancies are opening either.. The result is a static labor market, especially for those seeking their first job.

Youth employment on the rise. Youth employment is already accustomed to be a problem for most economies in the world. The US AI’s canary-in-the-mine figures show that the youth unemployment rate is increasing, especially in the technology sector.

Veteran Goldman Sachs analyst Joseph Briggs stressed on the podcast Exchangesthat more than 3% of young people between 20 and 30 years old have lost their jobs in technology since the beginning of the year, and the big layoffs made by companies such as Microsoft, Google and Meta directly affect this generational group. Are replaced by other engineers with more experience.

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Image | Unsplash (Vitaly Gariev)