Part 4/10:
The Long-term Impact of AI on Jobs and Productivity
When asked about AI’s influence on the labor market, Powell responded cautiously, citing "great uncertainty" around the specifics. He acknowledged that AI appears to be starting to influence employment but emphasized that the full extent remains unclear.
Evidence of AI’s Effect on Young Workers
Powell pointed out a 13% decline in employment among workers aged 22-25 since 2022—an indication that AI might be replacing some entry-level roles traditionally filled by recent graduates. This echoes fears that automation and AI could displace large segments of the workforce, especially those just entering the job market.