How is AI Affecting White Collar Jobs?

As companies like Amazon, Meta, Target, and others have announced layoffs ranging from 1,800 to 14,000 or more roles cut, some Americans have begun questioning what role artificial intelligence (AI) plays in the job market.

What Companies Are Saying: Breitbart (Right bias) reported that some corporate leaders, such as Salesforce CEO Marc Benioff and Amazon CEO Andy Jassy, have been "bragging about AI replacing humans." It also noted that layoffs and the influx of AI use have changed expectations for remaining managers and employees, "with heavier workloads and less time for individual attention becoming the norm." 

Fewer White Collar Jobs: Wall Street Journal (Center) reported that while entry-level applicants are struggling to find work, "both experienced white-collar workers and new college graduates seeking their first jobs are getting squeezed." According to the Journal, the difficulty in finding office work is partially due to the "embrace by companies of artificial intelligence, which executives hope can handle more of the work that well-compensated white-collar workers have been doing." The Journal particularly highlighted the strain the poor job market has put on people's personal and family lives, including a quote from a recent grad who said that "many young people want to be independent but can't find a foothold in the job market." Both Breitbart and Wall Street Journal added that despite the decrease in available white collar jobs, there is a shortage of workers in front-line and blue-collar positions, particularly in trade, healthcare, hospitality, and construction.

A Strategic Choice? Jacobin (Left) examined a Yale Budget Lab study that found that "while the anxiety over the effects of generative AI on today's labor market are widespread, our data suggests it remains largely speculative." Another economist said that AI is only expected to increase US GDP by about 1.5% over the next decade. Instead, Jacobin alleged that "AI is not the cause of the layoffs but their justification," arguing that large companies are using AI as a guise to lay off workers, rehire them at lower wages, and increase workloads for remaining employees.

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