Breaking News: How AI is Impacting Jobs and Pay According to Latest ECB Research
Published on: March 10, 2024
The European Central Bank's latest research indicates that the rapid adoption of artificial intelligence (AI) is shaping the labor market in significant ways. Contrary to popular fears of AI leading to widespread job losses, the study finds that AI adoption is currently creating jobs, especially for young and highly skilled workers.
Despite the recession, which would typically ease labor market pressures, employers are facing challenges in finding qualified workers amidst heavy investments in AI. The ECB's research, which involved a sample of 16 European countries, reveals that sectors exposed to AI have seen an increase in employment share. The impact on low and medium-skill jobs has been minimal, with highly skilled positions receiving the most substantial boost.
However, the research also identifies a 'neutral to slightly negative' impact on earnings, raising concerns that this trend could intensify in the future. While AI technologies continue to evolve and become more integrated into various industries, most of their impact on employment and wages, as well as on overall growth and equality, remains to be seen.
This pattern of impact by AI contrasts with previous technological advancements, such as computerization, which led to a decrease in the relative share of medium-skilled workers and resulted in job market polarization. The ECB's findings suggest that the ongoing AI revolution may have different implications for the labor market compared to past technological waves.