There Are Now Growing Signs That AI Is Hurting Employment in the Job Market
"AI productivity gains are showing up." The post There Are Now Growing Signs That AI Is Hurting Employment in the Job Market appeared first on Futurism .
Recent reports from the Financial Times highlight emerging evidence suggesting that artificial intelligence (AI) may be negatively impacting employment within the job market. Analyst Eric Basmajian posited in a recent post that AI productivity gains are beginning to influence jobs data, although the impact appears to be limited to around 15% of jobs.
Specifically, Basmajian noted that industries adopting AI most heavily—namely, information, professional services, and finance—experienced a productivity trend shift from 2.2% to 5.0% since 2022. These gains in workplace productivity appeared to coincide with high AI adoption rates.
Just a day after Basmajian's post, an internal Goldman Sachs report made rounds on social media, suggesting the "AI labor market impact" was extending beyond the tech sector—a field already experiencing significant disruption due to AI's role in automating software code writing. The report indicated a rising trend between AI exposure and unemployment in non-tech professional sectors, such as finance, telecommunications, technical services, and administration, seemingly corroborating Basmajian's findings.
However, The Financial Times (FT) appended several crucial caveats to the story. The productivity metrics used in these cases may not necessarily reflect quality improvements—rather, they might indicate reduced workforce size, a distinction that's important. Moreover, the data provided only pertains to the United States, potentially masking the broader post-Pandemic economic challenges rather than a global AI-driven job crisis.
The FT emphasized that the relationship between AI usage, productivity growth, and falling employment is not evident outside the U.S.
Despite these caveats, the story suggests that AI advocates now have empirical evidence to support their claims about the labor market. However, those anticipating a widespread "AI labor revolution" might have to wait a bit longer, as the connection between AI adoption and labor market shifts remains more nuanced than initially perceived.
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