Goldman Sachs finds AI automation is hitting entry-level roles hardest across developed markets, with call center employment trailing its long-run trend by 39% in the US, 33% in Canada and 27% in Germany; a 10% AI exposure links to a 0.1% drag on annual headcount growth and cuts exceed 0.6 percentage points for entry-level roles in Australia and over 0.2 points in the US. Challenger data shows AI was cited in 10,970 US job cuts in July (33% of that month's 33,429 cuts) and in 112,713 announcements year-to-date (~24%), and Goldman warns this concentrated disruption could constrain talent pipelines and adoption in tech and crypto hiring even as firms announced 107,500 planned hires through July, up 25% year-over-year.

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In Brief

Goldman Sachs says AI job losses hit entry-level workers hardest.
US call center employment now sits 39% below its long-run trend.
AI drove 10,970 US job cuts in July, Challenger data shows.

Entry-level workers are taking the sharpest hit from artificial intelligence (AI), according to Goldman Sachs. The bank tracked hiring across developed economies and found the drag concentrated at the start of careers.

The bank published the research on Wednesday after examining employment growth across more than 800 occupations.

Where AI Job Losses Show Up First

Industries most exposed to automation have posted slower growth in job openings since the second half of 2022. Goldman said the pattern is clearest in Germany, Australia, and the US.

Employment across information and communication services has cooled in almost every major developed economy over the same period. Outside the US, headcount in those industries still sits near or above its long-run trend.

Narrower categories tell a sharper story. Employment in call centers, software publishing, management consulting, and advertising services has fallen below the historical trend across developed markets.

According to the research, call centers stand out the most. Employment trails trend by 39% in the US, 33% in Canada, and 27% in Germany.

Goldman reads that as proof that the pressure lands first where automation tools already exist. Uber made that link explicit in July when it tied customer service job cuts to an AI efficiency push.

Adoption explains part of the gap. Major developed markets have reached rates of 15% to 20%, with France, the US, the Netherlands, and the UK leading. Italy, Japan, and New Zealand sit at the bottom, while emerging markets range between 10% and 15%.

Entry-Level Workers Carry the Cost

The damage concentrates at the start of careers. Across the wider workforce, the effect stays small. A 10% AI exposure was linked to a 0.1% drag on annual headcount growth in France, Canada, and the US.

For entry-level roles, that same exposure cut growth by more than 0.6 points in Australia. The US drag topped 0.2 points.

The signal is already reaching campuses, with students avoiding computer science degrees in favor of fields they judge safer. Earlier, research from Goldman Sachs estimated that the technology was subtracting 16,000 jobs per month from US payroll growth.

US Layoff Data Backs the Trend

Meanwhile, Challenger, Gray & Christmas counted 33,429 job cuts in July. This was the lowest monthly total in two years.

AI led all stated reasons for the fifth consecutive month, accounting for 10,970 of those cuts, or 33%. Employers have named it in 112,713 announcements this year, roughly 24% of the total.

Technology sits at the center of the cutting with 149,023 announcements through July, up 67% from a year earlier. The sector now accounts for 31% of all 2026 cuts, extending thelosses in tech and finance tracked earlier.

Andy Challenger, the firm’s chief revenue officer, said corporate messaging around the technology has shifted.

“Naming AI in a layoff announcement can win over investors while pushing current and prospective employees away. That’s why the messaging has swung from hedging to aggressively citing it,” he said.

Hiring plans complicate the picture. Companies announced 107,500 planned hires through July, up 25% from the same stretch of 2025. Demand is strongest in aerospace, energy, and manufacturing.

“Hiring has also increased over last year by 25%, so while AI is shifting the labor market, it is not dismantling it,” Challenger added.

Goldman concluded that the hiring pressure is visible worldwide but still confined to a narrow set of industries and workers. That containment is what US lawmakers demanding action on displacement will watch as adoption rises.

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