White-Collar Job Decline: AI Not to Blame
Source: cnbc.com
Economists state that the decline in white-collar jobs is not due to artificial intelligence, at least not yet. Professional and business services have not had much hiring activity in the last two years. Job growth in this sector decreased to -0.4% in May, according to the Bureau of Labor Statistics. Cory Stahle, an economist at Indeed, notes that this sector has been losing job opportunities. Industries like health care, construction, and manufacturing have experienced more job creation. Health care added 62,000 jobs in May.
Economists suggest that the decline in white-collar job openings is due to structural issues in the economy, not AI. Alí Bustamante, an economist and director at the Roosevelt Institute, stated that it is not AI. Stahle agreed, noting that it is more of an economic story than an AI disruption, so far.
Reasons for the Decline
Economists cite a few reasons why AI is not behind the decline in white-collar job creation. Bustamante said that the decline has been happening for years, when AI technology was not advanced. Stahle added that the technology is still in early stages and requires human intervention to execute key skills.
An Indeed report found that none of the identified work skills are very likely to be replaced by generative AI. About 68.7% of skills were either very unlikely or unlikely to be replaced by GenAI technology. Stahle said that AI may become a bigger factor in the future, but it is not currently a major issue.
Future of AI in the Workforce
While AI has not yet replaced human workers, the technology may disrupt the labor force in the future. Stahle acknowledged that jobs will transform and does not want to downplay the potential impacts of AI.
Stahle mentioned that consulting jobs focused on implementing generative AI are increasing. Management consulting roles with AI language accounted for 12.4% of GenAI postings. A World Economic Forum report forecasts that AI will create 170 million new jobs by 2030. However, 92 million jobs could be displaced by AI technology. Stahle advises knowledge-based workers to develop skills in using AI technology.