Productivity gains from AI are appearing in many of the same fields where entry-level employment is starting to decline. Employment among software developers aged 22–25 has plummeted nearly 20% since 2024, even as their older colleagues’ headcount grows. The pattern repeats in other jobs with higher levels of AI exposure, like customer service. Meanwhile, firm surveys indicate executives expect this trend to accelerate, with planned headcount reductions outpacing recent cuts. Translation: The disruption is targeted and just beginning.
I posted this in one of the Sam Altman threads but I think it probably deserves its own post. There’s some other interesting things in the report.
Then no. However if the replacement produces 1000000 widgets with 1000 rejects, then the boss might say - alright, we need more QA to catch those rejects and we’re still X ahead, then yes. Productivity isn’t measured by the output of one person of particular widget but the output of the unit as a whole, or more importantly the profit of the firm altogether divided by its workers. So if the boss can get more output while controlling the quality to the point of the customer not noticing too much from our replacement, we both get a pink slip.