By Professor David Collings

Much of the current debate about unemployment, particularly among graduates and early-career workers, has focused on the idea that artificial intelligence is “taking jobs.”

While AI is undoubtedly changing how work is done, this focus risks missing the more immediate and significant driver of today’s labour market slowdown: the cooling of the post-COVID hiring boom combined with high levels of global economic uncertainty.

There is no doubt that we have seen a rebalancing of staffing levels, particularly in the tech sector, following the massive surge in employment during the COVID-19 pandemic. This can best be understood as boom-and-bust hiring. Firms sought to maximise opportunity during boom times, COVID being a clear example for tech companies, resulting in significant expansion.

Illustratively, several tech firms increased their headcount by as much as 100% during the pandemic.........

© LBC