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AI: Jobs, Power & Money
8JUN

Goldman counts 25,000 jobs lost monthly

3 min read
11:04UTC

A bottom-up displacement model from Goldman Sachs calculates AI is eliminating three times more jobs per month than appear in any official tally.

EconomicDeveloping
Key takeaway

Announced AI layoffs undercount actual displacement by roughly three to one.

Goldman Sachs published research on 6 April calculating that AI substitutes 25,000 US jobs per month and creates roughly 9,000 through augmentation, a net loss of 16,000 positions monthly⁠1. Over twelve months that implies approximately 300,000 actual substitutions, against the 107,094 cumulative AI-attributed cuts that Challenger, Gray & Christmas has counted since 2023. The gap is roughly three to one: for every job cut that appears in the public tally, Goldman's model suggests two more disappear without a press release.

Goldman's bottom-up model resolves a contradiction this topic has tracked since Update #3. The Atlanta Fed projected 502,000 AI-attributed cuts for 2026, while the NBER found 90% of firms report zero employment impact. Goldman explains the gap: most displacement runs through attrition, contract non-renewal, and restructured job descriptions rather than announced layoffs. Workers vanish from roles that are never re-posted.

The mechanism falls hardest on entry-level positions. A study of 62 million resumes found AI-adopting firms cut entry-level postings by 15% while senior roles held flat; the Dallas Fed confirmed the losses concentrate among workers under 25 through collapsed job-finding rates, not firing. Fortune and Columbia University research showed 75% of displaced Americans never file for unemployment insurance, meaning three quarters of the newly unemployed are invisible to the claims system policymakers depend on.

Deep Analysis

In plain English

There are two ways to count jobs lost to AI. The first is to count the announcements: when a company says publicly that it is cutting jobs because of AI. These announcements have now topped 107,000 since 2023. Goldman Sachs has tried to count the second way: how many jobs are actually disappearing through quieter means. Workers whose contracts are not renewed. Roles that are quietly restructured. Positions that open up when someone leaves and are then never re-posted. Goldman's estimate is 25,000 per month are being replaced by AI, with about 9,000 new positions created elsewhere, leaving a net loss of 16,000 every month. If Goldman is right, the announced figure of 107,000 total is roughly one-third of the real number. The other two-thirds disappear without a press release.

Deep Analysis
Root Causes

Goldman's model identifies attrition as the primary transmission mechanism: when workers leave roles that AI can perform, those positions are quietly closed rather than re-posted. Dell's annual report documented this precisely, shedding 27% of its workforce from 133,000 to 97,000 over three years through attrition and limited hiring rather than public announcements.

The measurement gap has structural causes. Challenger, Gray & Christmas counts only layoffs where companies explicitly cite AI as the reason, which is roughly 25% of total announced cuts in March 2026. Companies have legal and reputational incentives to attribute cuts to 'restructuring' or 'efficiency' rather than AI: it avoids triggering AI-specific disclosure requirements and reduces union mobilisation risk.

A Hamilton Project synthesis (2026) noted that job posting declines in AI-exposed occupations began in 2022, before ChatGPT's November 2022 release, correlating with rising interest rates. This complicates causal attribution: the attrition Goldman measures may partly reflect a rate cycle rather than pure AI substitution.

What could happen next?
  • Consequence

    If Goldman's 3:1 ratio between actual and announced displacement holds, cumulative AI-driven job losses since 2023 may already exceed 300,000, not the 107,000 in the Challenger dataset.

  • Risk

    Policy responses calibrated to the Challenger headline figure may be addressing one-third of actual displacement, leaving the majority invisible to labour market interventions.

First Reported In

Update #5 · The model they won't release

Fortune (reporting Goldman Sachs research)· 10 Apr 2026
Read original →
Different Perspectives
TSMC
TSMC
The chipmaker raised its 2026 revenue growth forecast to about 44% on 15 October while holding capital spending at $60-64bn. High-performance computing, mostly AI data-centre chips, made up 68% of quarterly revenue, so demand for the hardware behind automation is still rising.
South Korean government
South Korean government
Its statistics office published the first youth figures on the 15-to-34 band set by a revised law, showing a fall of 98,000 against 147,000 on the old band. Including people in their early thirties, whose employment rose, makes the official youth decline look gentler.
Office for National Statistics
Office for National Statistics
The ONS put UK vacancies at 691,000 for July to September and professional, scientific and technical vacancies 11.6% lower on the year. In September it had shown the same sector still adding jobs, so the fall appears in adverts before it reaches headcount.
Chinese government
Chinese government
Officials told a State Council Information Office briefing on 10 October that 10.52 million new urban jobs had been created by September, 87.7% of the annual target. Official figures show investment falling overall but rising in networks, data services and robot output, with urban unemployment at 5.2%.
Tharman Shanmugaratnam
Tharman Shanmugaratnam
Singapore's President, co-chair of the World Bank Jobs Council, urged governments at the Bangkok meetings to make crisis-era youth employment support a standing policy tool. That treats young workers' AI exposure as a lasting budget line rather than a shock to ride out.
Srini Pallia, Wipro
Srini Pallia, Wipro
Wipro's chief executive called AI a long-term growth driver as the company cut 6,716 staff on flat revenue. HCLTech and TCS added staff in the same quarter, so Wipro's cut sits beside its own weak revenue rather than an industry-wide fall.

Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Editorial standards.