Workers in AI-Disrupted Jobs Face Longer Recoveries, Lower Pay

Goldman Sachs report finds employees displaced by AI may need an extra month to find work and see 4% income declines.

Jan. 27, 2026 at 7:07pm

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According to a new report from Goldman Sachs, workers in industries disrupted by artificial intelligence (AI) may require an average of one month longer than others to find a new job. The analysis also found that once these displaced workers do land a full-time role, their earnings may decline by more than 4% - double the rate of other displaced workers. The report indicates that the shift to AI could be particularly challenging for workers aged 55 and older, who have faced prior periods of labor market disruption.

Why it matters

As more employers adopt AI technology, concerns are growing about potential job losses. Goldman Sachs estimates that 6-7% of U.S. workers may be displaced by AI in the next decade. This news highlights the extra challenges that workers in AI-impacted industries may face in finding new employment and maintaining their previous income levels.

The details

The Goldman Sachs analysis was based on outcomes for workers in 'disrupted occupations' - those in the bottom quintile of employment growth - from 1990 to 2024, excluding the Great Recession. The report found that generally, unemployed workers are out of a job for a median of 11.4 weeks. However, workers displaced from shrinking fields may require an additional month to find work. Additionally, their earnings may decline by more than 4% when they do land a full-time role, double the rate of other displaced workers.

  • The Goldman Sachs report was published in January 2026.

The players

Goldman Sachs

An American multinational investment bank and financial services company.

Federal Reserve Bank of St. Louis

One of the 12 regional Federal Reserve Banks that, together with the Board of Governors, make up the Federal Reserve System, the central banking system of the United States.

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What’s next

The report's findings highlight the need for workers to proactively develop skills that complement AI technology in order to remain competitive in the job market. Policymakers may also need to consider measures to support displaced workers, such as retraining programs and unemployment assistance.

The takeaway

As AI continues to transform the workforce, this report underscores the potential for significant disruption and the challenges workers in affected industries may face in finding new jobs and maintaining their previous income levels. Preparing the workforce for this transition will be crucial in mitigating the negative impacts of AI-driven displacement.