Author: Serdar Ozkan , Nicholas Sullivan

These patterns are particularly striking in technology sectors, where workers might expect AI to augment rather than to replace their roles. Software developers, data analysts and other tech professionals are finding that AI tools can indeed accelerate certain tasks, but potentially at the cost of overall employment demand.

Our results suggest we may be witnessing the early stages of AI-driven job displacement. Unlike previous technological revolutions that primarily affected manufacturing or routine clerical work, generative AI can target cognitive tasks performed by knowledge workers—traditionally among the most secure employment categories.

I don’t think AI is doing the heavy lifting here figuratively. Its corporations doing what they do best in a capitalistic system, do more with less.

_{Quote Citation: Serdar Ozkan , Nicholas Sullivan, “Is AI Contributing to Rising Unemployment? | St. Louis Fed”, August 26, 2025, https://www.stlouisfed.org/on-the-economy/2025/aug/is-ai-contributing-unemployment-evidence-occupational-variation?utm_source=Federal+Reserve+Bank+of+St.+Louis+Publications&utm_campaign=5d8b3d4104-BlogAlert_Manual_082625&utm_medium=email&utm_term=0_c572dedae2-5d8b3d4104-237369665}