WASHINGTON — Artificial intelligence is rapidly transforming the U.S. labor market, prompting questions about whether it is eliminating jobs or fundamentally reshaping work dynamics.
From assembly lines to personal computers, innovation has frequently altered the nature of work. Experts suggest that artificial intelligence could be causing a disruption unlike anything seen before. Microsoft co-founder Bill Gates noted that AI is a disruptor “like nothing in our lifetimes,” affecting nearly every industry, including health care, education, finance, and professional services.
A recent study from the Massachusetts Institute of Technology indicates that AI systems may automate or replace tasks representing approximately 12 percent of the U.S. labor market, equating to around $1.2 trillion in wages. The effects are expected to be most significant in white-collar sectors such as finance, health care, and professional services.
Labor market data is beginning to show strain in high-skilled occupations. Employment in some of the highest-paying roles, like management analysts and aerospace engineers, has decreased by around 3.5 percent over the past five years. Jobs in finance, architecture, and engineering have also seen declines of about 2 to 2.5 percent during the same period. The unemployment rate among college graduates is rising, with majors exposed to AI, such as computer engineering and architecture, experiencing increased pressure.
Some economists attribute this slowdown partly to the rise of artificial intelligence, while others caution against overstating its effects. Martha Gimbel, executive director of Yale’s Budget Lab, stated that there is little evidence of widespread job losses driven by AI. She emphasized, “We really can’t find any sort of macro effect of AI on the labor market.”
Contrastingly, some new data suggests a more positive outlook. An analysis by Vanguard found job and wage growth over the past two years in occupations more exposed to artificial intelligence, indicating that the technology may create new demand and enhance productivity instead of merely replacing workers. A separate survey revealed that most institutional investors and corporate chief executives anticipate that AI will increase hiring across all levels by 2026.
As the discussion evolves, lawmakers are seeking to better understand AI’s impact. A bipartisan bill introduced by Republican Sen. Josh Hawley and Democratic Sen. Mark Warner would mandate companies and federal agencies to report quarterly to the Department of Labor on layoffs attributed to artificial intelligence. Supporters argue that this measure would provide essential data on how AI is reshaping the American workforce as the technology continues to expand across various sectors.
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