AI Adoption Drives Hiring Headwinds Across Major Economies

A recent report by Goldman Sachs Research found that major developed economies have led the way in adopting artificial intelligence, with France, the US, the Netherlands, and the UK at the top end of the range. The report indicated that these countries have deployed AI faster than other nations, while major emerging markets recorded adoption rates between 10% and 15%. Industries with greater exposure to automation witnessed a slowdown in job openings starting from the second half of 2022, particularly in Germany, Australia, and the US.

The research found that employment growth slowed notably across information and communication services, call centres, software publishing, and advertising. In the US, headcount across information and communication services dropped below its long-run trend, while remaining near or above historical trends across other developed economies. The contraction appeared marked across specialized subsectors across several developed markets.

The report evaluated occupational exposure across more than 800 occupations and showed that a 10% occupational exposure generated a drag of only 0.1 percentage point on annual headcount growth across the US, France, and Canada. Despite sector-specific contractions, broader macroeconomic effects remained subdued, with economy-wide hiring headwinds remaining limited.