Monday, October 13, 2025

AI and the Jobs/Productivity Debate

Goldman economists on the Gen Z hiring nightmare: ‘Jobless growth’ is probably the new normal
https://fortune.com/2025/10/14/goldman-economists-gen-z-hiring-nightmare-low-fire-hire-jobless-growth-normal

AI Is Juicing the Economy. Is It Making American Workers More Productive?
https://www.wsj.com/tech/ai/ai-worker-productivity-economy-77498195
Investment in AI ignited a fire under the U.S. economy. But the technology hasn’t yet fulfilled the promise of making humans work more efficiently. 

Behind Job Weakness Are Hints of a Productivity Revival. Is AI the Reason?
https://www.wsj.com/tech/ai/behind-job-weakness-are-hints-of-a-productivity-revival-is-ai-the-reason-cf6309da
The artificial-intelligence investment boom resembles the tech spree that brought a productivity renaissance three decades ago.

Can AI replace junior workers?

https://www.economist.com/graphic-detail/2025/10/13/can-ai-replace-junior-workers
The effect is still hard to spot in official data. But a study of 300,000 companies suggests where hiring is weakening.


Will AI Pay Off the West’s Debts?
https://www.project-syndicate.org/commentary/ai-will-not-rescue-rich-countries-from-debt-pressures-by-kenneth-rogoff-2025-10
Even if AI solves the problem of rich countries’ anemic economic growth, it will almost certainly lead to a much higher share of capital in output, and a correspondingly lower share for labor. Therefore, these countries would be reckless to assume that they can rely on the technology to increase tax revenues and wipe out their debts.