AI will not trigger employment collapse, staffing company Adecco Group says

By John Revill

ZURICH, July ‌23 (Reuters) - AI will ​not ​trigger a collapse in employment despite concerns the technology will displace large numbers of workers, a study by staffing ‌company Adecco Group showed on Thursday .

Employers have cited AI as ⁠responsible for nearly a quarter of job cuts in the United States this ‌year, global outplacement firm Challenger, ‌Gray & Christmas said.

Microsoft said this month it was cutting about 2.1% of its workforce, joining HSBC Holdings, Amazon and Standard Chartered in ​a wave of layoffs as they shift investment toward AI.

But Denis Machuel, CEO of Zurich-based Adecco, the world's largest staffing company, ⁠told Reuters some companies were using AI as a cover for cuts caused by weaker performance, ​restructuring or other problems.

"AI is bringing a massive evolution in the world of work, but a job apocalypse ​is not on the horizon," he said. "It's ‌more about changing roles and tasks than eliminating jobs."

Three and a half years after the release of OpenAI's ⁠AI chatbot ChatGPT, employment rates are at record highs and unemployment near historic lows, Adecco said, citing data from the Paris-based Organisation for Economic Co-operation ⁠and Development about its 38 member countries.

Previous industrial revolutions from the advent of steam, ​electricity, information technology and the internet have transformed work without causing mass job destruction, Machuel said.

"With the data we have so far, there's no evidence we ‌will have a different scenario with AI," he added.

Some entry-level jobs were disappearing but employers could not simply ‌cut junior positions without damaging talent pipelines, Machuel said.

Companies needed to reinvent ⁠such jobs so AI can ‌complement them, Machuel ​said, noting upskilling, reskilling, and closer collaboration among companies, governments and education systems was essential.

(Reporting by John RevillEditing by ‌Rod Nickel)

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