AI-driven layoffs hit degree holders and tech workers hardest, report finds

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Report claims degree holders and tech sector workers continue to see AI-induced layoffs

New unemployment tracker lays foundation for future employment laws

Despite layoffs, new job opportunities remain elsewhere

A New California Policy Lab report has revealed artificial intelligence could actually be leading to a number of layoffs despite recent promises that the tech is creating new roles.

But the data points towards certain roles being more susceptible than others. Those with a bachelor's, master's or PhD degree in highly AI-exposed roles saw higher unemployment rates after ChatGPT was released in late 2022.

Insurance claims for unemployment among bachelor's degree holders rose more than 50% between November 2023 (13,000 claims per month) and July 2023 (22,000 claims per month). Claims have since fallen, but remain above earlier levels, standing at around 16,000 claims per month currently.

AI still causing some job losses

And California leads the way for AI-induced layoffs, with the Bay Area's high concentration of tech companies making it a likely place for labor market effects to emerge first.

But the report is largely optimistic about AI's impacts on roles – although certain roles are clearly at risk of displacement, other roles still promise opportunities for human workers.

"AI does not seem to have affected national unemployment rates... but has affected the headcounts of certain occupations with more exposure to AI," the paper concludes.

Though region-specific, the report marks the introduction of the California AI-Unemployment Tracker (CAIT) using near-real-time data, which it says is important for guiding employment laws and support as AI's impacts on the labor market continue to evolve.

Ultimately, the paper concludes that higher-level workers are being affected first, particularly in Califorina's tech sector, but the overall impact on the labor market might be more displacement rather than replacement.