""The notion that the government necessarily has to hold the hands of every single person getting displaced... underestimates the resourcefulness of people," White House adviser Jacob Helberg said at the Axios AI+ DC Summit last week. "The top-down approach, where we assume that the government has to have the answer to everything, actually underestimates the incredible adaptability and resourcefulness of the private sector," Helberg told Axios' Maria Curi."
""While it takes a lot of people to build a new data center, it takes relatively few to operate one," wrote Minneapolis Federal Reserve president Neel Kashkari in a new essay. "Thus the labor market and the stock market could both be right: Technology is driving rapid growth of industries that don't require as much labor, resulting in a booming stock market and sluggish hiring environment," Kashkari added."
Unemployment remains low while new job creation has nearly halted. AI-related investments are sustaining topline growth and buoyant financial markets but demand fewer workers. These investments require compute power, high-end software engineering, and electricity rather than large labor forces. A political divide exists between officials optimistic that AI will boost growth and those warning of widespread displacement. Policymakers face competing views on government intervention, balancing expectations of private-sector adaptability against concerns about millions of potential job losses. Upskilling and retraining are highlighted as a primary policy focus to prepare workers for technology-driven shifts in labor demand.
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