Lost jobs, inequality, rogue agents: why are we accepting oligarchs’ AI agenda? | Robert Reich
The dangers of AI become clearer every day. Why are we still acting as if we have no choice about our future? Rather than producing jobs, the US economy actually lost 23,000 jobs in July, according to Bureau of Labor Statistics data released on Friday. In addition, May and June’s job numbers were revised downward, showing a combined 103,000 fewer jobs than previously reported. As if this weren’t…
Recent data revealed a troubling trend: the United States economy lost 23,000 jobs in July, a figure that has been revised downward to reveal a cumulative loss of 103,000 jobs in May and June. Coupled with a sluggish wage growth of just 0.1% since June and a paltry 3.2% over the past year, the economic landscape appears bleak. But there's more at play here than mere numbers; the rise of artificial intelligence (AI) is casting a long shadow over the job market, especially among younger workers and those in occupations most exposed to AI.
A Morgan Stanley study suggests that unemployment rates are 0.5 percentage points higher for AI-exposed occupations, a trend that disproportionately affects younger individuals. Moreover, these workers are grappling with longer periods of unemployment, making it harder for them to re-enter the workforce. While this economic downturn may be partly attributed to other factors, it raises a crucial question: are employers anticipating a future with fewer workers and lower wages?
The data paints a grim picture, with more than half of Americans expressing concern over AI potentially displacing household members. According to Edlich and Slok, wage growth in AI-exposed jobs has contracted by 6.7% since 2023, leading to a staggering $28 billion loss for 5.8 million affected workers. As we grapple with these challenges, it becomes clear that AI is not just reshaping the labor market but also deepening wealth inequality and political power, threatening our very democracy.
Written by urgent.news from Guardian Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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