White Collar Job Losses: AI Isn’t the Sole Cause
AI Impact: White-Collar Jobs Evolving, Not Disappearing
Updated June 13, 2025
Despite concerns, economists assert that artificial intelligence is not yet the main cause of the slowdown in white-collar hiring. instead, they point to broader economic trends and structural issues within the economy.
Recent data from the Bureau of Labor Statistics indicates a slight decline in professional and business services,a sector encompassing manny white-collar roles. Cory Stahle, an economist at Indeed, notes that while this sector has seen limited job growth, other industries like health care and construction are expanding.
Alí Bustamante,an economist with the Roosevelt Institute,emphasized that the current situation is “more of an economic story and less of an AI disruption story,at least so far.”
AI Still in Early Stages
Economists suggest that AI’s limited impact on job displacement is due to its current developmental stage. Bustamante noted that the decline in white-collar job creation predates the rise of refined AI. Stahle added that AI technology still requires human intervention for key tasks.
An Indeed report from 2024 supports this,finding that most work skills are unlikely to be replaced by generative artificial intelligence. The report categorized nearly 70% of skills as either “very unlikely” or “unlikely” to be replaced.
“Certainly, jobs are going to transform. I’m not going to downplay the potential impacts of AI.”
‘Jobs Are Going to Transform’
While AI may not be replacing jobs en masse,it is indeed undoubtedly transforming them. Stahle highlighted the increasing demand for consultants specializing in implementing generative AI. Indeed’s February report showed that management consulting roles with AI language accounted for 12.4% of GenAI postings, indicating growing demand.
The World economic Forum projects that AI could create 170 million new jobs by 2030, while possibly displacing 92 million others. For knowledge workers, developing skills in AI technologies is becoming increasingly important.
What’s next
As artificial intelligence continues to evolve, workers should focus on upskilling and adapting to new roles that leverage AI technologies. This proactive approach will help them remain competitive in a changing job market.