Tech occupations have been among the hardest hit by steep declines in hiring since 2018, per BI; pic.twitter.com/Qze5oNfFaX
— unusual_whales (@unusual_whales) November 22, 2024
AI-driven transformation is reshaping the labor market, leaving unemployment surging while stocks tied to AI employee replacement and the gig economy climb. This is more than a business trend—it’s a revolution with human costs. Since 2018, tech companies have slashed jobs, prioritizing AI investments over human labor. The disruption has intensified in recent years, with over 191,000 U.S.-based tech workers laid off in 2023 alone.
AI employee replacement stocks and gig economy stocks are rising while unemployment is surging.
It's easy to see we're entering a period of mass worker displacement and civil unrest as people find themselves unemployed with few prospects outside of self-employment & creativity. t.co/MarzHdIf2w pic.twitter.com/xysm5fwKlp
— Financelot (@FinanceLancelot) November 21, 2024
Major firms like SAP, Google, and Duolingo are leading this shift. SAP is restructuring 8,000 roles to integrate AI across operations. Google’s ad sales team saw hundreds laid off as AI solutions replace human input. Even Duolingo, a company rooted in education, cut its contractor workforce by 10% to emphasize AI-driven platforms. These moves highlight how widespread the adoption of automation has become.
The pivot to AI stems from corporations’ quest for efficiency and competitive advantage. However, the collateral damage is clear: steep declines in hiring, especially in traditional software roles. By Q1 2024, 58 tech firms laid off 7,785 employees, a stark reminder of the human toll behind the AI boom.
For displaced workers, the options are grim: pivot to self-employment, explore gig economy roles, or face prolonged unemployment. Gig economy stocks are surging as companies like Uber and DoorDash attract an expanding pool of job seekers, but these roles often lack stability or benefits.
The implications are profound. Civil unrest becomes a real threat when people lose access to stable jobs and reliable income. It’s not just a workforce issue—it’s a societal challenge. Policymakers, tech leaders, and society must grapple with the reality of balancing technological progress with human welfare.
Sources:
www.cbsnews.com/news/tech-layoffs-artificial-intelligence-ai-chatgpt/
www.axios.com/2024/01/18/tech-layoffs-ai-2024-google-amazon/
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