Goldman Sachs finds AI layoffs add a month to your job search

Workers losing jobs to AI take four extra weeks to find new roles, and the delay is even longer for mid-career professionals.

Layoffs · Source: AIWeekly (Fortune original)

What happened

Losing a job to artificial intelligence means a longer road back to work. A new Goldman Sachs analysis shows workers displaced from AI-exposed jobs since 2025 took about a month longer to find new roles than other laid-off workers. They were also 10 percentage points more likely to remain unemployed a full year later.

The data comes from Labor Department surveys covering more than 15,000 displaced workers between 2016 and 2025. Because the government does not directly ask if AI caused a job loss, Goldman built a score based on industry adoption and job type, treating the top 30 percent as AI-displaced. Employers themselves are being direct about the shift. They cited AI as the reason for 120,136 job cuts through September, making it the top reason given for layoffs.

The financial impact is also visible in the broader market. Only 49 percent of long-tenured workers who lost full-time jobs between 2023 and 2025 found new roles paying the same or more. In the previous survey, 62 percent of workers maintained or increased their pay.

By the numbers

Why it matters

A layoff from an AI-heavy role requires planning for a longer search. Standard severance packages and outplacement services are often underwritten too thin to cover the extra weeks it takes to land a new position. Job seekers need to prepare for a slower hiring process and expect tougher conditions when negotiating starting offers.

The types of jobs people take next are also shifting. Many workers leaving AI-exposed roles switch industries entirely to find stable work. However, Goldman notes that when older workers do find new jobs, they often land in roles with similar or even higher AI exposure. This puts them at risk of facing the exact same displacement cycle again in the future.

Who this hits

Professionals 35 and older

This group faces the longest delays in returning to work after an AI-related layoff. They take about five weeks longer than non-AI displaced workers to secure a new full-time job.

Young workers under 35

Younger professionals bounce back slightly faster, taking about three extra weeks to find work compared to their peers. They also cycle through fewer temporary jobs and are less likely to need a second job while recovering.

New graduates

Recent graduates are feeling the impact at the front door rather than through direct layoffs. Stanford researchers found hiring for young workers ages 22 to 25 in highly AI-exposed jobs dropped by 19 percent compared to less-exposed roles.

What to do this week

See who's hiring right now on GiraffyReach

My take

I see many candidates assume their experience will guarantee a quick return to the workforce, but the data shows AI is changing the timeline. If you lose a job to automation, you must prepare for a longer search and be flexible about your next industry. The best defense is updating your skills before you are forced to look for a new role.

Sources

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