Goldman Sachs’ hundreds of laid-off bankers face toughest job market since early Covid era

There’s currently 1.36 million American banking jobs, according to U.S. Bureau of Labor Statistics data— 33,000 fewer than last year, meaning those job seekers must compete for fewer opportunities.

The shrinking job market for bankers is even worse if you look back to August 2022, when there were 47% more jobs on Indeed than there are today, and 45% more on Santa Monica-based competitor, Zip Recruiter. In total, there’s 16,500 fewer American banking jobs today than there were back then.

The reduction in jobs coincides with a record year for banks. The Dow Jones U.S. Banks Index that tracks the weighted average performance of American banks of all sizes has increased by 41% over the year ending September 6.

Those two things are likely related, according to Andrew Crowell, vice chairman of wealth management for investment firm D.A. Davidson. Crowell says the current bull run “could continue for several more years” and relies heavily on tech investments.

“Bringing efficiencies to businesses,” he says, “whether through computerization, automation, AI, or culling from the bottom of the least productive individuals in a company is just good discipline.” Cromwell’s observations are consistent with a Citigroup report in June, which predicted 54% of banking jobs could be “displaced” by artificial intelligence, more than any other industry.

There is, however, reason for optimism. In spite of the net decrease in banking jobs according to the Bureau of Labor Statistics, Zip Recruiter is already seeing an uptick in job postings since a year ago.

It’s also important to note, that Goldman isn’t the only bank that routinely culls its weakest performers. Both JPMorgan and Citi also annually cut under performers, and all three are also hiring. Goldman’s global head of communications told Fortune in a statement that the bank expects to employ more people in 2024 than in 2023.

“Our economy has reopened,” says Crowell. “Supply chains have have smoothed out the disruptions we saw globally have now loosened.”