'High Salary & Stability → AI Replaceable' Perception Shift
88% Increase in White-Collar Layoffs in US IT Sector
"Will white-collar workers ultimately lose their jobs due to AI created by white-collar workers themselves?"
According to the Wall Street Journal (WSJ) on the 15th (local time), experts have analyzed that due to advancements in artificial intelligence (AI) technology and other reasons, the demand for white-collar labor in U.S. companies is unlikely to recover to past levels.
'White-collar' refers to employees in management or office positions at large corporations, traditionally considered high-paying and stable jobs. However, white-collar workers have recently seen their position rapidly diminish in the U.S. labor market. This is due to ongoing corporate layoffs amid a high interest rate and high inflation environment.
Mark Zuckerberg, CEO of Meta, recently stated right after conducting layoffs, "It is highly likely that the positions vacated by departing employees will not be filled going forward." At McDonald's, some management staff were recently notified, "If you do not want to be subject to layoffs, you must agree to bonus or salary cuts." According to the nonprofit organization 'Employ America,' the number of unemployed white-collar workers increased by 150,000 during the 2023 fiscal year, which ended in March this year.
In particular, the demand for white-collar labor in the IT (Information Technology) sector is not what it used to be. According to U.S. Department of Labor statistics, layoffs in this sector have surged by 88% compared to a year ago. During the same period, layoffs in the finance and insurance industries increased by 55%, a figure significantly lower than that of the IT sector.
Experts analyze that the commercialization of AI technology has reduced the need for white-collar labor in various companies. Even if vacancies arise, thanks to new technologies such as AI, companies can operate more efficiently. It is an ironic situation where white-collar workers who integrate AI technology into industries are losing their jobs because of AI itself.
Arvind Krishna, CEO of IBM, recently announced, "Within five years, 7,800 jobs in areas such as human resources will be replaced by AI." Rodney McMullen, CEO of the major U.S. retail chain Kroger, predicted, "A very large number of jobs will be affected by the advent of AI."
Meanwhile, demand for 'blue-collar' workers, referring to laborers working in various fields, is expected to steadily increase. According to the U.S. Department of Labor, blue-collar jobs such as restaurant cooks, fast-food workers, and freight transport, which can earn about $32,000 (approximately 42 million KRW) annually, are projected to continue growing until 2031.
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