Live Markets: Is AI reducing jobs and driving productivity? Maybe
LIVE MARKETS-Is AI reducing jobs and driving productivity? Maybe Adds blog post
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IS AI REDUCING JOBS AND DRIVING PRODUCTIVITY? MAYBE
Economists these days spend a lot of time arguing about AI, particularly whether it’s causing job losses or driving up workers’ productivity. Now researchers at the Bank of England have had a crack, looking at the UK economy.
On the Bank Underground blog, economist Haley Schlicht said the data shows sectors most exposed to artificial intelligence have seen the biggest falls in vacancies in recent years, with customer service openings falling 23% in data from 2023 to 2026.
Yet Schlicht said there are plenty of caveats, not least that the different drivers are hard to disentangle.
“The UK vacancy puzzle is a picture of overlapping shocks: pandemic over-hire followed by cyclical loosening, but also remote-working adjustment, labour-cost pressures, and AI arriving close enough together that confident attribution remains premature.”
In a separate blog, economist Sandra Batten said AI-producing sectors, such as ICT, and some AI-using sectors, such as administration and support, are showing increased contributions to productivity growth.
But she cautioned that this shows correlation rather than cause. So… the debate continues.
(Harry Robertson)
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