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Abstract Is AI disrupting jobs and creating unemployment? This question has stirred public concern for job stability and motivated studies assessing occupations’ automation risk. These studies used readily available employment and wage statistics to quantify occupational changes for employed workers. However, they did not directly examine unemployment dynamics primarily due to the lack of data across occupations, geography, and time. Here, we overcome this barrier using monthly occupation-level unemployment data from each US state’s unemployment insurance office from 2010 to 2020 to assess AI exposure models, job separations, and unemployment through a new measure called unemployment risk. We demonstrate that standard employment statistics are inadequate proxies for occupations’ unemployment risk and find that individual AI exposure models are poor predictors of occupations’ unemployment risk states’ total unemployment rates, and states’ total job separation rates. However, an ensemble approach exhibits substantial predictive power, accounting for an additional 18% of variation in unemployment risk across occupations, states, and time compared to a baseline model that controls for education, occupations’ skills, seasonality, and regional effects. These results suggest that competing models may capture different aspects of AI exposure and that automation shapes US unemployment. Our results demonstrate the power of occupation-specific job disruption data and that efforts using only one AI exposure score will misrepresent AI’s impact on the future of work.
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Assessing the impact of technological change on similar occupations: Implications for employment alternatives
BackgroundThe fast-changing labor market highlights the need for an in-depth understanding of occupational mobility impacted by technological change. However, we lack a multidimensional classification scheme that considers similarities of occupations comprehensively, which prevents us from predicting employment trends and mobility across occupations. This study fills the gap by examining employment trends based on similarities between occupations. MethodWe first demonstrated a new method that clusters 756 occupation titles based on knowledge, skills, abilities, education, experience, training, activities, values, and interests. We used the Principal Component Analysis to categorize occupations in the Standard Occupational Classification, which is grouped into a four-level hierarchy. Then, we paired the occupation clusters with the occupational employment projections provided by the U.S. Bureau of Labor Statistics. We analyzed how employment would change and what factors affect the employment changes within occupation groups. Particularly, we specified factors related to technological changes. ResultsThe results reveal that technological change accounts for significant job losses in some clusters. This poses occupational mobility challenges for workers in these jobs at present. Job losses for nearly 60% of current employment will occur in low-skill, low-wage occupational groups. Meanwhile, many mid-skilled and highly skilled jobs are projected to grow in the next ten years. ConclusionOur results demonstrate the utility of our occupational classification scheme. Furthermore, it suggests a critical need for skills upgrading and workforce development for workers in declining jobs. Special attention should be paid to vulnerable workers, such as older individuals and minorities.
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- Award ID(s):
- 2041215
- PAR ID:
- 10526080
- Editor(s):
- Amavilah, Voxi Heinrich
- Publisher / Repository:
- Plos
- Date Published:
- Journal Name:
- PLOS ONE
- Volume:
- 18
- Issue:
- 9
- ISSN:
- 1932-6203
- Page Range / eLocation ID:
- e0291428
- Format(s):
- Medium: X
- Sponsoring Org:
- National Science Foundation
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Accepted Manuscript1.0
- Journal Article:
- https://doi.org/10.1371/journal.pone.0291428
