The introduction of generative artificial intelligence (AI) is already beginning to shift the landscape of the global labor market, with young technology workers experiencing the first tangible impacts, according to the latest analysis from Goldman Sachs economists. While sweeping workforce changes have yet to occur, new research and employment data suggest that AI is quietly, but unmistakably, starting to reshape hiring practices and job security—particularly among early-career employees in the tech sector (CNBC).
Generative AI, brought into mainstream use with OpenAI’s release of ChatGPT in late 2022, has rapidly become a central force in the global technology industry. The technology’s ability to automate routine and even complex programming tasks is compelling companies to rethink talent strategies. According to a senior economist from the Goldman Sachs research division, signs of a hiring slowdown are already emerging in technology fields, notably affecting those aged 20 to 30—a demographic at the forefront of early displacement.
This trend marks a departure from two decades of consistent tech employment growth. For the past 20 years, technology jobs have trended upward in an almost linear trajectory, with the sector absorbing an ever-larger share of overall employment. However, over the past three years, there’s evidence that tech hiring has slowed enough to drop below its established trend line—an unusual and concerning shift, particularly for those just entering the field.
The impact of AI on employment practices has become more visible as large technology firms report significant increases in automation. Companies such as Alphabet and Microsoft now attribute roughly 30% of code output on some projects to AI, while in June, the CEO of Salesforce declared that AI was responsible for up to 50% of work at the company. This automation, while boosting productivity and benefiting shareholders, raises fundamental questions about the future of entry-level and routine tech jobs (Salesforce CEO announcement).
For young tech workers, the impact is measurable. Goldman Sachs reports that the unemployment rate among 20- to 30-year-olds in the tech sector has jumped by three percentage points since the start of 2025—a much steeper rise than observed in the sector overall or among young workers in different fields. These findings are drawn from a Goldman Sachs report titled “Quantifying the Risks of AI-Related Job Displacement,” which uses labor market data from reputable sources like IPUMS and the firm’s internal research division.
A former technology investment banker who now co-leads the Goldman Sachs Global Institute explained that, as firms roll out AI-driven tools, they intentionally hold off on hiring junior workers to increase enterprise flexibility and adaptability without sacrificing competitiveness. This deliberate pause leaves young entrants temporarily sidelined in favor of leaner, more automated teams.
Broader projections from Goldman Sachs paint a sobering picture for the future. In a baseline scenario, economists estimate that AI-powered automation could eventually displace 6% to 7% of jobs across all industries—a transition that could accelerate dramatically if technological breakthroughs arrive faster than anticipated or if worsening economic conditions push companies to trim costs more aggressively.
The specter of artificial general intelligence (AGI)—a hypothetical AI capable of learning and adapting at a human level across multiple domains—adds another layer of uncertainty. As the senior economist noted, their analysis does not yet model the effects of true AGI, but such a development would almost certainly yield even more disruptive workforce changes, potentially affecting a far greater swath of employees.
For Thai readers, these findings present both a warning and an opportunity. Thailand’s digital transformation agenda, including the government’s ongoing push to nurture local digital talent and attract foreign investment in technology, is still in its relatively early stages compared with global tech hubs. However, as AI tools become more prevalent and affordable, similar labor market trends are likely to emerge regionally. Young Thai graduates entering the tech sector might find themselves facing fiercer competition, with companies using AI to reduce the need for entry-level roles. At the same time, there is significant potential for workers who can acquire specialized skills in AI development, prompt engineering, and data science.
Historically, Thailand’s labor market has shown adaptability when faced with international technological shifts, as seen in the past with automation in automotive manufacturing and electronics. But the pace and scale of AI-driven disruption are without precedent. Universities, vocational schools, and private training institutes may need to accelerate efforts to update curricula, focusing on creativity, cross-functional problem-solving, and advanced technical literacy to prepare Thai youth for a future where routine digital tasks are increasingly automated (World Bank - Skills for Future Jobs).
In practical terms, young job seekers are encouraged to pursue lifelong learning, prioritize continuous upskilling, and explore interdisciplinary paths that combine domain knowledge with AI competency. Policymakers may consider collaborating with industry to provide more accessible upskilling programs, foster tech entrepreneurship, and implement safety nets for those at risk of displacement.
A focus on adapting education systems, sharpening labor regulations to ensure fair transition processes, and supporting research into responsible AI adoption can help Thailand avoid the pitfalls being observed in more mature tech economies. As the global labor landscape evolves at breakneck speed, a coordinated approach between government, academia, and the private sector will be crucial to ensuring that Thai youth are not left behind.
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