Every job eliminated and attributed to AI resets market expectations for that function, like a house selling at a loss that resets comps for the whole street. The workers who remain negotiate against a smaller market with fewer openings, and their bargaining power drops whether or not AI is actually doing the work.
https://readuncut.com/the-ai-bet-corporate-america-actually-made-it-wasnt-productivity/
#WageSuppression #LaborEconomics #AIImpact #Negotiation #MarketDynamics

AI Layoffs and Wage Compression: The Bet Corporate America Made
AI gave corporate America a way to gut headcount and get applauded for it. An NBER study found only 2% of execs attributed cuts to actual AI, but 60% cut in anticipation of efficiencies that haven't arrived. The bet was never productivity. It was permanent wage compression with better PR.
