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Saturday, Nov. 15, 2025

Has AI already caused some job displacement?

Keshav Srikant, Econofact
yes

AI chatbots and other generative AI have already caused job displacement, although it varies by field and the magnitude remains unclear. 

An August 2025 Stanford working paper found early-career workers (ages 22-25) in the most AI-exposed occupations have experienced a 13% decline in employment relative to less exposed occupations. 

Labor market research firm Challenger, Gray & Christmas directly attributed 17,375 job cuts to AI, and another 20,000 to technological updates that likely include AI, between January and September 2025.  

However, this displacement represents a small fraction of overall labor market churn: in August 2025, there were 5.1 million total separations. A 2025 study from the Economic Innovation Group found no significant nationwide increase in unemployment due to AI. 

The prospect of AI-induced mass unemployment remains contested. One analysis suggests jobs lost to automation may be offset by new jobs in AI, though they will require advanced degrees.

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