AI's impact on jobs is expanding beyond tech, with slower employment growth in sectors like insurance and real estate. The Dutch government is cutting 25,000 public sector jobs through AI integration.
AI's labor impact expands beyond tech
Goldman Sachs economists reported on October 26 that artificial intelligence's influence on employment is now affecting more than just the technology sector in the United States. They pointed to slower job growth in industries such as insurance, real estate, and credit intermediation compared to the period before the pandemic.AI use linked to slower hiring
The bank’s analysis showed that in non-manufacturing sectors, the more companies use AI, the slower the employment growth and the higher the unemployment rate. While the connection to employment growth is strong, the link to unemployment is less consistent.Public concern about AI rises
Public worry about AI’s effects on the economy and jobs has grown significantly. A Pew Research Center survey from late September to early October found that 50% of Americans are “very concerned” about AI’s role in the economy, with 48% worried about people struggling to find work—a sharp increase from 29% in 2022.Dutch government cuts public sector jobs
The Dutch government announced on October 26 that it will eliminate about 25,000 public sector jobs, or 15% of its workforce, as part of a plan to make its administration “simpler, smarter, and smaller.” This is the largest government-led AI deployment project so far, aiming for significant cost savings in the future.
