"Recently, Goldman Sachs published an analysis titled "Jobless Growth," noting the current odd pattern of the U.S. economy growing strongly while jobs increase only slowly. The Goldman analysts aren't extremists like, say, legendary venture capitalist Vinod Khosla, who says AI will automate 80% of all jobs by 2030. Still, they see "concerning signs" in companies increasingly using AI. A recession could clarify the big picture considerably, they say."
"That's when workers in routine jobs tend to get laid off and not brought back when the recession ends. Consider for example the 2001 recession following the internet bust. CEOs had been working hard to use the internet in their businesses, reducing headcount in the process, but firing lots of employees is unpleasant, and bosses often put it off. The recession forced them to see how many employees they didn't need anymore, and it was a lot. Economists call the aftermath "the jobless recovery.""
Tesla's revenue surged while its profits declined. Markets rose in Europe and showed mixed results across Asia. Goldman Sachs notes an unusual pattern of robust U.S. economic growth accompanied by only slow job gains and warns of concerning signs as companies increasingly deploy AI. Historical recessions, such as the 2001 internet bust, forced firms to cut routine roles and not rehire, producing a jobless recovery. Goldman issued an internal memo warning employees about potential cuts and slower hiring while saying AI can unlock significant productivity gains. Citigroup described finding abundant efficiencies through AI implementations.
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