The adoption of AI is leading to a bifurcated job market, where employers are creating positions for experienced staff with AI skills while simultaneously reducing overall vacancies. Data from Indeed shared with Bloomberg indicates that British firms posted approximately 10% fewer vacancies this month compared to January 2025. This reduction in job postings, however, masks significant disparities as companies increasingly utilize AI to cut costs and boost productivity.
While AI may not be eliminating jobs outright, it appears to be impacting wages. A new white paper from Apollo Global Management, tracking wage and employment data for 321 occupations, found that jobs with high exposure to AI experienced an average 6.7% decline in real wage growth after 2023. This effect was particularly pronounced for the lowest earners, with service workers seeing a 24.3% decline in earnings growth since then. This suggests that AI may be coming for paychecks rather than jobs.
Goldman Sachs research further highlights that AI is weighing on labor markets in major developed economies, though its effects vary by industry and seniority level. Industries with greater AI exposure have seen slower job opening growth since the second half of 2022, especially in Germany, Australia, and the U.S. Employment in sectors like call centers, software publishing, management consulting, and advertising services has fallen sharply below historical trends. Entry-level workers are particularly affected, with AI-related headwinds being strongest for those starting their careers. For instance, call center employment is down 39% in the U.S., 33% in Canada, and 27% in Germany compared to historical trends, indicating tangible impacts where AI automation tools are available. Despite these localized impacts, the overall "AI job apocalypse" seems to be delayed, with a relative calm persisting in the broader labor market.
