The US economy saw a reduction of 23,000 jobs in July, according to Bureau of Labor Statistics data released on Friday. This follows downward revisions to job numbers for May and June, which collectively showed 103,000 fewer jobs than initially reported.
Alongside the job losses, wage growth has also slowed. Average hourly earnings increased by just 0.1% from June. Over the past year, average hourly earnings have risen by 3.2%, which is the lowest annual growth rate recorded in five years.
Research by economists at Morgan Stanley suggests that unemployment is half a percentage point higher in occupations significantly exposed to AI, which they estimate to be about 30% of all employment. Workers in these roles are also reportedly finding it more difficult to return to employment after joblessness.
Further research by economists Sania Edlich and Torsten Slok indicates that wage growth in jobs exposed to AI has contracted by 6.7% since 2023. This slowdown in wage growth has reportedly resulted in at least $28 billion in losses for 5.8 million affected workers.