AI's role in this shift is significant, as it enhances productivity, particularly among less experienced workers, potentially reducing the wage premium for experienced coders. Many tech companies are using AI to maintain productivity with smaller teams, contributing to a rise in unemployment in tech and related industries from 2.9% to 4.4% between 2022 and 2024. While some economists view these trends as temporary and not overly concerning, others suggest that the slower wage growth may be a trade-off for remote work flexibility.
Key takeaways:
- White-collar workers in the U.S. have faced higher unemployment and slower wage growth, partly due to AI and economic shifts.
- Unemployment rates for college graduates have risen significantly, with those having bachelor's degrees or some college but no degree most affected.
- AI is increasing automation in white-collar jobs, potentially reducing the wage premium for experienced workers and leading to smaller teams.
- Some economists believe these trends may be temporary and not overly concerning, with slower wage growth possibly linked to remote work preferences.