The US labor market is sending two different messages at once. July’s headline employment figures point toward weaker momentum, but the wage data beneath them suggest that AI-related investment is creating pockets of inflationary pressure that could complicate the Federal Reserve’s next policy decision. Non-farm payrolls declined by 23,000 in July, while average hourly earnings growth slowed to 3.1% from a year earlier. Taken in isolation, those…
Artificial intelligence is changing the labour market. According to an Ifo survey, the impact could be negative, especially for wage development and career starters.
About half of the companies surveyed by the Ifo Institute estimate that workers "with less than five years of work experience can expect lower wages", notes this study.