""The modest job growth alongside robust GDP growth seen recently is likely to be normal to some degree in the years ahead," analysts at Goldman Sachs wrote. They added that this trend is likely to continue, with most potential growth coming from AI-driven productivity. Meanwhile, population and lower immigration would contribute only modestly to the labor supply. There are already signs of a weaker job market, wrote the analysts."
"The analysts pointed out that job growth outside the healthcare industry has turned negative in recent months, and that corporate management teams are increasingly focused on using AI to reduce labor costs - a shift that could weigh on hiring long term. "Over just the last few years, AI does appear to be hurting the employment prospects of the most closely exposed workers, such as young technology workers," the analysts wrote."
AI-driven productivity is supporting robust GDP growth while reducing demand for labor, producing modest job growth alongside strong economic output. Population growth and lower immigration are expected to contribute only modestly to the labor supply. Job growth outside the healthcare sector has recently turned negative, and corporate management increasingly focuses on using AI to cut labor costs, which can weigh on hiring over the long term. Employment prospects have worsened for workers most exposed to AI, including young technology workers, and employment growth is already negative in the most AI-exposed industries. Productivity gains can help contain inflation, though transitional dislocations are possible.
Read at Business Insider
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