Today, we’re sitting down with Dominic Jainy, a seasoned IT professional whose deep expertise in artificial intelligence, machine learning, and blockchain offers a unique perspective on the evolving landscape of technology and labor. With a passion for understanding how these innovations reshape industries, Dominic is the perfect person to help us unpack the recent warnings from Goldman Sachs about AI-driven “jobless growth” and its impact on Gen Z. In this conversation, we’ll explore the implications of automation on young workers, the potential for new roles in a hybrid workforce, and the urgent need for reskilling in an AI-dominated economy.
Can you explain what ‘jobless growth’ means in the context of AI and automation, and how it differs from economic growth patterns of the past?
Absolutely. ‘Jobless growth’ refers to a situation where the economy grows—think rising GDP or corporate profits—but without creating a proportional number of jobs. With AI and automation, this happens because technologies can handle tasks that humans used to do, often faster and cheaper. In the past, economic growth, like during the industrial revolution or post-World War II boom, usually meant more jobs as industries expanded. Factories needed workers, and new sectors created demand for labor. Now, AI can boost productivity by automating routine tasks in areas like finance or retail, but instead of hiring more people, companies often just streamline operations. It’s a fundamental shift—growth is driven by tech, not labor.
Why do you think this trend of jobless growth is hitting Gen Z harder than other generations?
Gen Z is particularly vulnerable because they’re entering the workforce at a time when entry-level roles—think data entry, customer service, or basic admin tasks—are being automated at a rapid pace. Older generations often have established careers or skills that are harder to replace, and they’ve had time to adapt. But for Gen Z, they’re starting from scratch, often with student debt and economic pressures, only to find the traditional stepping-stone jobs disappearing. Plus, they’re competing in a market where companies prioritize efficiency over hiring, which narrows their window to gain experience.
What are some of the specific impacts AI might have on job opportunities for young workers entering the market today?
AI is likely to squeeze opportunities for young workers by automating tasks that make up many entry-level positions. Think about roles in retail, like cashiers, or in offices, like basic accounting or scheduling—AI tools can handle these with minimal human input. The Goldman Sachs report suggests up to 300 million jobs globally could be affected, and a big chunk of those are the kinds of roles new workers rely on to get a foot in the door. The ripple effect is that young people may struggle to build resumes or gain the experience needed to move up, creating a kind of career stagnation early on.
Which industries or job types do you see as most at risk of being automated, especially for Gen Z?
Industries heavy on repetitive, rule-based tasks are most at risk. Think retail, where AI can manage inventory or process transactions, or manufacturing, where robotics handle assembly. In white-collar spaces, sectors like finance and legal services are seeing automation of data analysis and document review—jobs that once went to junior staff. For Gen Z, these are exactly the areas where they’d typically start. Customer service is another big one; chatbots and virtual assistants are already replacing call center roles. If a task can be broken down into predictable steps, it’s likely on the chopping block.
Are there any sectors where Gen Z might still find stable entry-level roles despite the rise of AI?
Yes, there are still pockets of opportunity, especially in sectors where human judgment, creativity, or personal interaction are hard to replicate. Healthcare, for instance, needs hands-on roles like nursing or therapy, where empathy and nuanced decision-making matter. Education is another area—teachers and trainers who can adapt to tech but still provide personal guidance are in demand. Also, trades like plumbing or electrical work aren’t easily automated due to their physical, on-site nature. Gen Z can look to these fields for more stability, though they often require specific training or apprenticeships.
How does the projection of AI affecting up to 300 million jobs globally translate to the reality for an average young worker starting their career?
That 300 million figure is staggering, but for an individual young worker, it means the job market is becoming a much tougher place to break into. It’s not just about fewer jobs overall—it’s about the type of roles disappearing. Many of those millions are routine or entry-level positions, so a young person might find their expected career path, like starting as a clerk and working up, just isn’t there. It creates a sense of uncertainty; you might need to pivot to a completely different field or skill set before even getting started, which can be daunting when you’re already dealing with financial pressures or limited experience.
How does AI’s impact on white-collar jobs compare to its effect on blue-collar roles, based on current trends?
Interestingly, AI is hitting white-collar jobs harder right now, especially with tools like generative AI that can draft reports, analyze data, or even write code—tasks common in finance, marketing, or legal fields. Blue-collar roles, like construction or maintenance, are somewhat safer in the short term because they often require physical presence and adaptability that machines can’t fully replicate yet. However, automation in manufacturing with robotics is still a threat to blue-collar work. The difference is that white-collar automation can scale faster through software, while blue-collar automation often needs costly hardware, slowing its spread a bit.
Many companies, including Goldman Sachs with their internal AI tools, are prioritizing efficiency over hiring. How does this trend reflect broader shifts in the corporate world?
This push for efficiency is a core part of how companies are staying competitive in a global economy. Tools like Goldman Sachs’ internal AI assistant automate tasks that used to take hours of human labor—think data crunching or generating reports. Across the corporate world, there’s a race to cut costs and boost output, especially in industries facing tight margins. The downside is that hiring, especially for lower-level roles, becomes a last resort. Why hire a team of analysts when an AI can do 80% of the work? It’s a mindset shift—labor is seen as a cost to minimize, not an investment to grow.
Could these efficiency-driven AI tools be replacing the kinds of first jobs Gen Z might typically take?
Definitely. Many of these AI tools target exactly the kind of work that serves as a starting point for young people—think administrative support, basic customer inquiries, or data entry. These roles teach soft skills like communication and problem-solving, but if they’re automated, Gen Z misses out on that foundational experience. It’s not just about losing a paycheck; it’s about losing the chance to build a career trajectory. Companies might save money upfront, but it creates a gap in developing the next generation of skilled workers.
There’s talk of a ‘hybrid workforce’ where AI and humans collaborate. What might this look like for young workers, and what opportunities could it create?
A hybrid workforce means humans and AI working side by side, where AI handles repetitive or data-heavy tasks, and people focus on strategy, creativity, or oversight. For young workers, this could mean roles where they manage or train AI systems—think ensuring algorithms are unbiased or interpreting AI outputs for decision-making. It’s a chance to step into positions that didn’t exist a decade ago, like AI ethics specialists or data curators. The catch is that these roles often require a blend of tech savvy and critical thinking, so Gen Z needs to be proactive in learning how to complement, not compete with, machines.
What specific skills should Gen Z focus on to stay relevant in this AI-driven economy?
First, digital literacy is non-negotiable—understanding how AI tools work, even at a basic level, is crucial. Beyond that, skills in data analysis, like using Python or machine learning basics, can set you apart since companies need people to interpret AI outputs. Soft skills like adaptability and problem-solving are just as important because they’re harder to automate. Also, look into niche areas like cybersecurity or AI ethics, which are growing as tech advances. The goal is to focus on what AI can’t do well—human judgment, creativity, and emotional intelligence—and pair that with enough tech know-how to stay relevant.
What’s your forecast for how AI will shape the job market for Gen Z over the next decade?
I think the next decade will be a challenging but transformative period for Gen Z. AI will continue to disrupt traditional job paths, especially in routine or predictable roles, pushing more young workers into gig or freelance economies where flexibility is key. At the same time, I expect new opportunities in tech-adjacent fields—think AI system management or digital transformation consulting—to grow as companies fully integrate these tools. The disparity between those who adapt through upskilling and those who don’t will likely widen, so proactive learning will be critical. Governments and schools will need to step in with accessible training, or we risk deepening inequality. It’s not all bleak, though; Gen Z’s native comfort with tech gives them a head start if they can channel it into the right areas.