Jobless Growth Becomes New Normal as AI Reshapes Labor Market
Goldman Sachs economists identify “jobless growth” as the new labor market normal, where AI-driven productivity gains outpace hiring. This trend particularly impacts Gen Z and entry-level workers despite solid GDP growth.
The United States is experiencing a troubling new economic phenomenon that Goldman Sachs economists call “jobless growth” – a situation where robust GDP expansion coincides with stagnant hiring, creating particular challenges for Gen Z workers and recent college graduates. According to recent analysis by Goldman economists David Mericle and Pierfrancesco Mei, this pattern represents a fundamental shift in labor market dynamics that’s likely to persist throughout the mid-2020s.
