‘Zero evidence’ for AI causing job loss, claims Apollo economist
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Fears that artificial intelligence will trigger widespread job losses may be overstated, according to Torsten Slok, Partner and Chief Economist at Apollo Global Management, who says current labour market data shows no evidence that AI is eliminating jobs
In a blog post published Friday, Slok cited data from the ADP National Employment Report and argued that there is no measurable sign of AI-driven job destruction in the US economy. Instead, he said companies are increasingly hiring workers with expertise in implementing and managing artificial intelligence systems, while rapid investment in AI infrastructure is boosting demand for specialised talent.
According to Slok, the expansion of data centres and AI-related projects is pushing up salaries for AI professionals and increasing demand for semiconductors, equipment and energy. He contends that the current wave of AI investment is supporting employment growth rather than reducing headcounts.
Slok linked the trend to Jevons paradox, an economic theory which holds that greater efficiency can increase overall demand for a resource or technology. He argued that as AI tools become cheaper and more accessible, businesses are likely to expand their use of technology-driven services, creating additional economic activity and employment opportunities.
Based on this view, Slok suggested that US nonfarm payroll growth for May could exceed economists’ expectations. He maintains that lower-cost technology is generating new demand across sectors, resulting in higher hiring rather than workforce reductions.
His comments come amid persistent concerns about AI’s impact on jobs and after several major companies, including Cisco, Atlassian, Cloudflare, IBM, Coinbase and Snap, linked workforce reductions to artificial intelligence initiatives. However, a growing number of industry leaders have questioned that narrative, arguing that many layoffs are more closely tied to cost-cutting measures, restructuring programmes and broader economic pressures than to direct productivity gains from AI.
The debate continues as businesses accelerate AI adoption while labour market data remains resilient.
Based on India Today report