The U.S. labor market is growing where AI has the least presence and shrinking where it has the most. Information and Financial Activities are shedding jobs while Education, Health, and Retail – sectors defined by physical presence and human contact – are carrying the hiring load.
Notably, Professional Services see a substantial increase of 37K, consistent with the emerging evidence that AI is lowering barriers to business formation (as it now becomes easier, cheaper, and faster to open a company with AI), which in turn increases demand for legal, accounting, consulting, design, and management work.
In future notes I will explore in more detail how AI is shaping the macro outlook for the U.S. economy.
By Amir Kh.
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