AI and unemployment

The rise of Artificial Intelligence and automation is bringing rapid, transformative change to society, especially in the labour force. Most people are unprepared for how fast and deeply these shifts will affect jobs and daily life. Some indications:

• The World Economic Forum (WEF) estimates that 39% of workers will need to change their core skills by 2030—five years from now!—specifically due to AI and automation.

• Globally, Goldman Sachs estimates that 300 million full-time jobs could be replaced by automation. Ford’s CEO estimates half of white-collar jobs will be replaced.

• Over 60,000 tech employees have been laid off in 2025 by companies like Microsoft, Google, and Amazon

Labour markets in developed countries are most at risk of automation, with up to 60% of jobs at stake. How will governments address the problem of unemployment and the widening inequality gap? What are some options:

• Do we need a UBI – universal basic income? I have blogged on this before.

• How will the tax structure work with an estimated 40% of US households will pay no income tax in 2025?

• How will governments pay for unemployment benefits etc?

• Automation taxes targeting companies that heavily use AI to displace workers?

• Wealth tax on large asset holders?

With AI you might experience a strange environment with increasing GDP, expanding labour productivity and rising unemployment.

AI is incredible. It is a force multiplier and is evolving at light speed. The impacts are only just beginning to be seen, a green shoot today that will turn into Jack’s beanstalk tomorrow.   Ed D’Agostino

Useful interview on AI from CNBC below

Source: Mauldin Economics- AI and Automation – Are You Ready? 11th July. Ed D’Agostino

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