LLevelNews
aiIntermediate2 min read11/2/2026

AI-Linked Job Losses Slow Workers' Return to Employment

Goldman Sachs found longer job searches after likely AI-related layoffs, with older workers facing bigger delays. Separately, some employers are restoring human roles after disappointing results from AI.

Americans whose job losses were likely linked to artificial intelligence have faced longer searches for new work, according to Goldman Sachs. Since 2025, these workers took about a month longer to find another job than other laid-off workers. Their likelihood of remaining unemployed after a year was roughly 10 percentage points higher.

The delay was greater for older workers. Those age 35 and above needed about five additional weeks to return to full-time employment, compared with three weeks for younger workers. Earlier Goldman research found that people displaced by technology experienced slower pay growth after accounting for inflation and a lasting risk of further unemployment.

Separately, some employers are hiring people again because AI systems have not met expectations. Recruitment firm Robert Half reported that companies needed more human oversight than expected and struggled to replace employees' knowledge of their organizations. Klarna began recruiting human customer service representatives again last year.

In June, Ford said it had hired or promoted 350 experienced engineers after AI quality-control tools performed below expectations. Management experts advise workers considering a return to discuss pay, training, and how AI could affect future staffing. They also recommend seeking clear commitments about job security before accepting an offer.

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