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Why artificial intelligence could make American workers even more ...
AI is not entering a neutral economy. It is moving into a system already tending heavily against labor, acting as an accelerant for trends that have been in motion for decades. While tech optimists promise new roles, the data suggests a different reality: a system designed for maximum efficiency and minimum human overhead. A system built against workers The United States differs from other wealthy nations in specific, measurable ways. It runs an at-will employment system — maintains a modest welfare state. The Bureau of Labor Statistics (BLS) recorded a union membership rate of 20.1% in 1983. By 2024, that figure had fallen to 9.9%, a record low. Among private sector workers, the rate dropped further still, to 5.9%. A decline influenced by deregulation, welfare rollbacks, and decades of policy choices. The current Trump administration pushed those conditions further. It fired the head of the National Labor Relations Board and issued an executive order weakening federal employee unions. Its domestic policy bill cut food assistance and health insurance. The federal workforce itself became the clearest illustration of the shift. The Department of Government Efficiency spearheaded the Trump administration’s plan to slash 300,000 federal positions. By March 2026, these cuts had eliminated nearly a tenth of the federal workforce. DOGE used AI to filter its federal layoffs. After forcing employees to justify their roles via email, the department fed those defenses into an algorithm to decide who stayed. In a single stroke, software replaced the standard review process. Three types of AI, one direction AI means different things depending on context: predictive AI powers streaming recommendations. Generative AI creates new content; ChatGPT and other large language models belong here. Agentic AI goes further still: it plans and acts independently to complete complex tasks from start to finish. Self driving vehicles sit at the visible end of that category, but enterprise software increasingly deploys it too. Eighty eight percent of companies have now integrated AI into their business. As adoption scales, the technology itself is outrunning expectations; Stanford’s latest data shows AI reasoning capabilities surging by 48.9% in a single year. The ceiling for what a machine can do is rising faster than we can adapt. And we are being outpaced by our own tools. What workers actually think A Pew Research Center survey of 5,273 employed US adults, conducted in October 2...
Is Generative AI creating more Jobs? - by Michael Spencer
Image by Deloitte. Good Morning, If Generative AI is a general purpose technology (GPT) we should be seeing massive job creation soon. AI is supposedly “hollowing out” of some entry level positions in some industries is while simultaneously revamping many roles within companies. Some areas like Software Engineering and customer service are on the front lines, creating new paradoxes of supply and demand. This week crypto exchange Coinbase said it was laying off 14% of its staff because of you guessed it, AI. Brian Armstrong@brian_armstrongThis is an email I sent earlier today to all employees at Coinbase: Team, Today I’ve made the difficult decision to reduce the size of Coinbase by ~14%. I want to walk you through why we're doing this now, what it means for those affected, and how this positions us for the10:55 AM · May 5, 2026 · 18.6M Views5.13K Replies · 2.3K Reposts · 19.2K LikesTech companies doing AI washing due to less demand for their products isn’t anything new. Executives in silicon Valley are using the same arguments on a repeated basis to please shareholders: “Second, AI is changing how we work. Over the past year, I’ve watched engineers use AI to ship in days what used to take a team weeks. Non-technical teams are now shipping production code and many of our workflows are being automated. The pace of what's possible with a small, focused team has changed dramatically, and it's accelerating every day.” - Brian Armstrong, CEO, Coinbase. So where are all the new jobs this technology is supposed to be creating? How much should we be listening to Economists who know how technological shifts occur historically and what to expect in the near future? Torsten Slok, the chief economist at Apollo Global Management, has been one of the loudest voices in the "AI is additive" camp. He’s been weighing in morelately on the labor impacts of AI. He recently oddly enough compared Chinese manufacturing automation of the early 2000s to Generative AI (which isn’t a good comparison at all) and said: “The AI shock is following the same playbook. The displacement force is different this time, impacting cognitive and white-collar work rather than factory floors. But every other element of the structure is remarkably familiar: a powerful disruption, immediate job losses in exposed sectors, and a wave of offsetting gains that keep headline unemployment low, see chart below.”But if this is a Jevons paradox type situation how about wage gains and the quality of the new jo...
The Future of Work With AI - ide.mit.edu
To find out, the same team of researchers collected survey data evaluating LLM performance on over 11,000 labor-market tasks drawn from government classifications. Next, they used GPT-4 to screen tasks for whether doing them with AI had the potential to save at least 10% of the time it takes for a human.
Seven in 10 Workers Fear AI Layoffs as Burnout, Political Stress and ...
A new report reveals rising AI anxiety, burnout and collapsing employer trust as 69% of workers fear layoffs. A new report reveals rising AI anxiety, burnout and collapsing employer trust as 69% of workers fear layoffs.