Wages for AI-Exposed Jobs Rise as Overall Employment Remains Stable, Study Finds

New research indicates that wages for jobs significantly exposed to generative artificial intelligence (GenAI) are experiencing an upward trend, while the overall number of jobs and vacancies remains largely unaffected. Economist Jon Hartley announced these updated findings from his paper, "Labor Market Effects of Generative Artificial Intelligence," highlighting a nuanced impact of the burgeoning technology on the workforce. The study also revealed a notable disparity in adoption, with Canada's integration of GenAI tools currently half that of the United States.

The updated paper, co-authored by researchers including Michael Webb and Erik Brynjolfsson, leverages data from sources such as the Occupational Employment Statistics (OES) and Lightcast/Burning Glass to track these labor market shifts. According to Hartley, "we find wages for GenAI exposed jobs are increasing (using OES, Lightcast/Burninglass data)." This suggests a growing premium for roles that either utilize or are directly influenced by GenAI technologies.

Despite the observed wage growth, the research provides reassurance regarding broader employment stability. Hartley further stated that "jobs/vacancies are unaffected," countering some long-standing concerns about widespread job displacement due to AI automation. This finding implies that while the nature of work may be evolving, the overall demand for labor in the economy is holding steady.

A significant geographical insight from the study points to differing rates of technological integration across North America. "Canada’s adoption of GenAI tools is half that of the US," Hartley noted. This disparity could have implications for economic competitiveness, innovation, and future labor market dynamics in both nations, potentially influencing policy decisions and investment strategies.

The findings contribute to the ongoing global discussion about the economic impact of artificial intelligence, offering data-driven insights into how GenAI is reshaping the labor landscape. The research underscores the importance of understanding specific effects, such as wage adjustments and adoption rates, rather than relying on broad generalizations about AI's influence on employment.