Published in AI

AI is creating, not destroying jobs

by on29 November 2023

But could cause wages to fall

The rapid adoption of AI could reduce wages, but so far is creating, not destroying, jobs, especially for the young and highly skilled, research published by the European Central Bank showed on Tuesday.

Firms have invested heavily in AI, leaving economists striving to understand the impact on the labour market and driving fears among the wider public for the future of their jobs.

At the same time, employers are struggling to find qualified workers despite a recession that would normally ease labour market pressures. In a sample of 16 European countries, the employment share of sectors exposed to AI increased, with low and medium-skill jobs largely unaffected and highly-skilled positions getting the biggest boost, a Research Bulletin published by the ECB said.

It cited "neutral to slightly negative impacts" on earnings and said those issues could increase. This will be bad news for workers who have seen wages fall since the 1980s.  


Last modified on 29 November 2023
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