Workers laid off due to AI face longer job searches than other displaced workers. They are 10 percentage points more likely to remain unemployed after a year. Three-quarters of those re-employed in 2025 landed in AI-exposed roles. Older workers suffer greater earnings losses after displacement. Recent graduates now face higher unemployment and underemployment rates. Goldman Sachs notes a pattern similar to past tech revolutions. AI may create new jobs but not quickly enough to offset losses. The broader economy may avoid mass unemployment despite these shifts.
What changed
Workers displaced by earlier tech shifts often moved to less-skilled jobs.
What it unlocks
Identifying that AI-related job displacement leads to longer unemployment and lower-quality re-employment.
- 1 month longer to find new employment
- 10 percentage points more likely to remain unemployed after a year
- 3/4 landed in AI-exposed occupations in 2025
- 5.4% unemployment rate for recent graduates
Sources