AI Boom, Job Doom: ChatGPT Sparks Stock Market Rally But Millions Risk Losing Jobs – Zee News
Since ChatGPT’s launch in November 2022, U.S. stocks have surged over 70 percent while job openings dropped nearly 30 percent, sparking debate over AI’s economic impact. Experts say the decline began with Fed rate hikes, not AI alone. While tech stocks soared, younger workers in AI-exposed roles faced job losses — showing AI is influential but not solely responsible.
Since ChatGPT launched in November 2022, the U.S. economy has shown a striking contrast — soaring stock markets and shrinking job listings. The S&P 500 has jumped over 70 percent, while job vacancies have fallen nearly 30 percent in the same period. This unusual pattern has sparked debate: is artificial intelligence truly reshaping the job market, or are other economic forces at play?
The decline in job openings actually began months before ChatGPT’s debut. Data shows vacancies peaked around March 2022, when the U.S. Federal Reserve started hiking interest rates to curb inflation. As borrowing costs surged, companies cut back on hiring and investments, slowing the pace of job creation across industries.
Analysts point out that the Fed’s tightening cycle has been a stronger force behind employment cooling. High interest rates have raised business costs, curbed expansion, and caused a 30 percent drop in job postings since the start of 2022. AI may have accelerated certain trends, but monetary policy remains the bigger driver of job shrinkage so far.
While jobs faded, the stock market rallied, powered by a handful of AI-focused tech giants. Firms like Nvidia, Microsoft, and Alphabet became major contributors to S&P 500 gains. These companies cut staff yet saw valuations rise, as investors bet heavily on AI’s future profits and automation potential.
Research suggests AI’s effect is uneven across age and job type. Younger workers (ages 22–25) in high-exposure roles — such as customer support, writing, or design — have seen employment fall by nearly 13 percent. In contrast, older and more experienced professionals in similar roles have remained relatively stable, indicating AI displacement is selective, not universal.
Besides technology, other long-term forces are shaping labour trends:
Trade policy changes affecting global supply chains.
Stricter immigration rules limiting labour availability.
Demographic slowdowns reducing overall workforce growth. Together, these factors have magnified the slowdown that many wrongly attribute solely to AI.
AI’s rise has clearly influenced productivity, profits, and job trends, but it’s not the sole reason for America’s economic divergence. The job slowdown aligns more with interest rate hikes, while stock surges reflect investor concentration in AI-driven firms. In short, AI has become a powerful symbol of change — but the broader story is still about policy, demographics, and long-term economic cycles.
Trending Photos
Thank you
