AI For Real

Tag: jobs

  • AI Isn’t Killing Jobs Everywhere Yet

    AI Isn’t Killing Jobs Everywhere Yet

    This could bring a bit of a cheer to our members.

    Recent surveys conducted by the U.S. Federal Reserve and the St. Louis Fed show “no clear evidence” that artificial intelligence (AI)adoption has led to widespread job losses. In fact, industries with higher AI uptake are reporting faster productivity growth on both sides of the Atlantic. Job postings data also indicate that firms embracing AI are not reducing hiring compared to others, suggesting that automation is not yet driving the slowdown in recruitment.

    Philippines and India

    According to a recent blog post by James Pethokoukis, senior Fellow DeWitt Wallace Chair Editor, AEIdeas Blog, Apollo Global Management had tracked unemployment trends in two economies heavily exposed to outsourced service work — call centers and back-office operations. Despite predictions that generative AI would devastate these sectors, neither Manila nor India had shown signs of labor-market deterioration. Analysts noted that if automation were truly eliminating jobs at scale, these markets would be the first to feel the shock.

    Programmers Worldwide
    There was one notable exception in programming jobs. Federal Reserve research showed employment growth among coders had slowed significantly since the launch of ChatGPT in 2022. While programmer employment continued to rise, the pace had decelerated, reflecting occupation-specific pressures rather than broader industry weakness.

    Key Takeaway

    Across the U.S., Europe, India, and the Philippines, AI’s labor market impact remains muted. While certain occupations —particularly programming — are experiencing slower growth, broader fears of mass displacement are not yet supported by data. Policymakers face the challenge of balancing vigilance with evidence-based action as AI adoption accelerates.

    Here’s a clear breakdown of the impact of AI on jobs in each country or region mentioned in the article you’re viewing:

    • United States
      • Federal Reserve surveys show no evidence of widespread job losses due to AI.
      • Industries adopting AI are seeing higher productivity growth, not reduced hiring.
      • Programmer jobs are the exception: growth has slowed since ChatGPT’s release, though employment is still rising.
    • Europe
      • Similar to the U.S., European labor markets show no clear signs of AI-driven unemployment.
      • Productivity gains are reported in sectors with higher AI adoption.
    • Philippines
      • Despite heavy exposure in call centers and outsourced services, no labor-market deterioration has been observed.
      • Analysts note this sector would be among the first hit if AI displacement were significant.
    • India
      • Outsourced back-office and service jobs remain stable, with no evidence of mass layoffs linked to AI.
      • Like the Philippines, India’s service-heavy economy is closely watched as a potential early indicator of disruption.

    Source: https://www.aei.org/economics/ai-job-panic-still-outruns-the-evidence/

  • AI Adoption Surges In Public Sector: Report

    AI Adoption Surges In Public Sector: Report

    Public-sector employees are now using AI at rates that rival the private sector, with Gallup reporting that 43% of government workers engaged with AI tools in late 2025 — a dramatic rise from just 17% in mid-2023.

    This surge highlights a rapid closing of the technology gap between government and business, despite longstanding challenges in recruiting technical talent and navigating stricter governance frameworks.

    The study shows that while private-sector employees still lead in frequent AI use (25% vs. 21%), public-sector workers surpass them in occasional use (22% vs. 16%). This balance puts government slightly ahead in overall adoption. Analysts attribute the growth to the accessibility of generative AI tools, which require little specialized training, allowing employees to experiment independently.

    Crucially, the report emphasizes that managerial support is the decisive factor in whether AI experimentation becomes routine. In public-sector organizations with strong leadership backing, 65% of employees use AI frequently, compared with only 37% in low-support environments. The findings suggest that leadership strategies — not just technology access — will determine whether AI adoption translates into lasting productivity gains.

    Challenges Remain

    Despite the rapid rise in AI adoption across the public sector, Gallup’s study points out several persistent challenges. Government agencies continue to face difficulties in attracting and retaining technical talent, which limits their ability to fully integrate advanced AI systems. Strict governance and compliance frameworks also slow down experimentation compared to the private sector. Moreover, without strong managerial support, many employees remain hesitant to move beyond casual use of AI tools, leaving productivity gains unevenly distributed. These hurdles suggest that while adoption is accelerating, the path to sustainable and transformative AI use in government still requires deliberate investment in leadership, training, and policy innovation.

    Click here to read the report.