economy
AI's real threat to jobs could be lower pay
The new technology is slowing wage growth, especially among lower-paying occupations, a new study finds.
TL;DR
- AI is slowing wage growth, especially in lower-paying jobs, rather than causing mass layoffs.
- Workers in high AI-exposure occupations saw 6.7 percentage points lower real wage growth after 2023.
- Affected workers lost out on an estimated $28 billion annually.
- The research found no significant AI-driven effect on employment levels.
- Workers at the bottom of the income ladder experienced greater declines in wage growth.
- Around 5.8 million U.S. workers are estimated to be in high-AI-exposure occupations.
- The trend has potentially profound implications for income inequality and living standards.
- Some job gains in trades like construction are occurring due to AI buildouts (e.g., data centers).
- Slower wage growth can lead to slower inflation and ease pressure on the Federal Reserve.
- The "Great Resignation" has ended, and worker quit rates are back to mid-2010s levels.