"'There could be a little bit of, almost, quiet time in the labor market,' Hassett told show host Joe Kernen, 'Because firms are finding that AI is making their workers so productive that they don't necessarily have to hire the new kids out of college and so on.' Hasset, however, maintains the position that AI will eventually create more jobs in the long run."
"A study by a team of researchers at Stanford University found that AI is already replacing entry-level coders, causing a nearly 20% decline in employment of 22- to 25-year-old developers by July 2025 in comparison to the hiring peak in late 2022. The Trump administration has aggressively promoted AI development. Trump has signed several executive orders aimed at easing regulations and expanding AI infrastructure, including initiatives to promote data center growth, such as the $500 billion Stargate Project."
AI may be pushing worker productivity so high that employers are delaying hiring, producing a temporary 'quiet time' in the labor market. Firms are finding AI makes existing workers more productive and reduces the need to hire recent college graduates. Long-run effects could include net job creation driven by output and income growth and new spending opportunities. A Stanford study found AI replacing entry-level coders, producing nearly a 20% drop in employment among 22- to 25-year-old developers by July 2025 versus the late-2022 hiring peak. The administration has promoted AI through executive orders and major data-center initiatives. Recent BLS data showed only 22,000 nonfarm jobs added in August and unemployment rising to 4.3%.
Read at Business Insider
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