"Returns on job experience are increasing in AI-exposed occupations. Young workers with primarily codifiable knowledge and limited experience will likely face challenging job markets. Using Bureau of Labor Statistics data, analysis found that occupations most exposed to AI tend to offer larger pay premiums for experienced workers."
"Since ChatGPT's debut in late 2022, overall US employment has risen about 2.5%, while employment in sectors most exposed to AI has slipped by roughly 1%. Wages tell a different story. The average weekly pay nationwide has climbed 7.5% since fall 2022, and across the most AI-exposed industries, wages have grown faster, up 8.5%."
"If AI were simply replacing workers, both employment and wages would likely be falling. Instead, a divide exists between codified knowledge—the kind learned from textbooks and university courses—and tacit knowledge gained from hands-on work experience, challenging the traditional career ladder and helping older employees earn more."
Analysis of employment and wage trends in AI-exposed industries reveals a nuanced impact rather than broad job losses. Overall US employment has risen 2.5% since ChatGPT's debut in late 2022, while AI-exposed sectors experienced a 1% employment decline. However, wages in these sectors grew 8.5% compared to the 7.5% national average. The data indicates a significant divide between codified knowledge from formal education and tacit knowledge from hands-on experience. Experienced workers in AI-exposed occupations command larger pay premiums, while entry-level workers with limited experience face challenging hiring conditions and weaker wage growth prospects.
Read at Business Insider
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