Can AI Save Us From a Forever Tight Labor Market?

In his recent column in the Wall Street Journal, Justin Lahart highlights the research of demographer Steve Ruggles to show that a dramatic long-term contraction in the labor market is no longer speculation, but is already here to stay.

Ruggles forecasts the U.S. labor force will expand by only 9.1 million people in the 10 years ending in 2030 and contract by 2.1 million in the decade that follows.

‍Many observers argue that AI will lead to too few jobs for the workers and higher unemployment. But Ruggles argues the opposite, that sharp declines in birth rates, labor force attachment, and immigration will create unprecedented labor shortages, or a “forever tight labor market” and that perhaps AI will be one of the solutions to increase productivity and help offset labor shortages.

Perhaps. But what if employers took a different approach, an employee-centered approach.  What if they tapped untapped sources of talent, re-designed jobs so that they are better for employees and employers, and support public policies that make it easier for employees to work? And, what if they started working on this now, instead of waiting for the impending labor shortage to reach crisis proportions, or the promise of AI and other possible tech solutions to kick in? That’s what we argue in Help Wanted, which will be available from MIT Press in less than three weeks! Order your copy today and get started.

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