AI Reshapes Job Market: Tech Layoffs Surge, Non-Tech Salaries Soar
A recent study by Lightcast, a labor market intelligence firm, reveals the dual impact of artificial intelligence (AI) on the global workforce.
While AI is driving significant layoffs in the tech sector, it’s simultaneously boosting salaries in non-tech industries by an average of $18,000 annually.
This shift, detailed in Lightcast’s “Beyond the Buzz” report, analyzed over 1.3 billion job postings and highlights how AI is reshaping employment landscapes.
In the tech industry, once the heart of AI innovation, automation is displacing workers in roles like software engineering, IT support, and administration. Up to 80,000 tech jobs have been cut, with Microsoft alone reducing 15,000 positions while investing $80 billion in AI. This contraction reflects a broader trend: traditional tech roles are shrinking as AI takes over routine tasks, with AI-related job postings in tech dropping from 61% in 2019 to 49% in 2024.
Conversely, AI is creating opportunities outside tech, with over half of AI-skilled job postings now in sectors like marketing, HR, finance, education, and manufacturing.
These roles offer a 28% salary premium, and positions requiring multiple AI skills command up to 43% higher pay. Generative AI skills, such as using tools like ChatGPT or DALL-E, have surged 800% in non-tech job postings since 2022.
Industries like customer service and sales are seeing significant pay increases as companies leverage AI for efficiency and competitive advantage.
The study emphasizes that AI fluency, combined with human skills like communication and problem-solving, is becoming a valuable asset.
Workers who can interpret AI outputs and integrate them with creative judgment are highly sought after. For businesses, embedding AI across departments is critical to staying competitive, while workers must adapt to avoid obsolescence.
The trend shows no signs of slowing, with Lightcast predicting further research to clarify income-level impacts.
This transformation signals a new era where AI skills are a gateway to higher earnings and career growth outside traditional tech hubs, but it also underscores the urgency for tech workers to pivot to hybrid roles to remain relevant.
FAQ
How is AI affecting tech jobs?
AI is automating tasks in software engineering, IT support, and administration, leading to significant layoffs, with up to 80,000 tech jobs cut recently.
Which industries are seeing salary increases due to AI?
Non-tech sectors like marketing, HR, finance, education, and manufacturing are offering higher salaries, averaging $18,000 more annually, for AI-skilled workers.
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