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Why hasn't AI increased unemployment?

A new study finds that firms adopting artificial intelligence grow headcount by 10% over two years, contradicting fears that AI will increase unemployment. Researchers at the paper report that most firms use AI at low intensity and see no hiring change, while high-intensity firms spending about $30 per employee per month on AI experience the growth. The findings challenge predictions of widespread job displacement from AI adoption.

read1 min views1 publishedJul 24, 2026
Why hasn't AI increased unemployment?
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  • 'There's a tsunami coming! It will be here in 10 minutes.<8 minutes pass> 'Still no sign of any tsunami, fearmonger.'
  • Please share this article with the half-million tech workers laid off since January 2025 so their companies could afford gluttonous CapEx to give to Anthropic and OpenAI to make chatbots. Post this article on LinkedIn and see if it gets a response. 😈
  • In our paper, we found it's because most firms aren't using AI much at all. And these "low-intensity" see no difference from control. High-intensity firms see 10% growth over two years, but that's a small set of firms using the most advanced tools.Replying to @arakharazianOur main result: firms that adopt AI grow headcount 10% over two years. Two caveats. 1. Growth subject to a minimum threshold: "Low" adopters, we defined as the bottom two terciles of per employee per month, spend on AI see no change in hiring. High adopters spend ~$30 per # Join the conversation
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