""Over the ten years following a job loss, real earnings for technology-displaced workers grow nearly 10 percentage points less than for never-displaced workers, and 5 percentage points less than for other displaced workers.""
""The short-run picture is rough. Workers displaced from technology-disrupted occupations take approximately one month longer to find a new job and suffer real earnings losses more than 3% larger upon reemployment compared with workers let go from more stable fields.""
""The core culprit, Goldman found, is occupational downgrading: displaced workers tend to slide into roles that are more routine and require fewer analytical and interpersonal skills, not less, because the same technological forces that eliminated their old jobs also eroded the market value of their existing skills.""
Workers displaced by AI face significant long-term challenges, with earnings recovery taking nearly a decade. Research indicates that displaced workers earn 10% less than their peers over ten years. The study analyzed data from over 20,000 individuals, revealing that displaced workers take longer to find new jobs and experience greater earnings losses. Many end up in lower-skilled roles due to occupational downgrading, which diminishes their market value. Surprisingly, recent college graduates may be better equipped to handle these disruptions.
Read at Fortune
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