AI Will Take Its Jobs in the Next Recession
Manufacturing peaked at 17.6 million in March 1998 and had slipped only about 300,000 by mid-2000.
17.3 million to 11.5 millionUS manufacturing employment, 2000 to 2010
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Manufacturing peaked at 17.6 million in March 1998 and had slipped only about 300,000 by mid-2000.
17.3 million to 11.5 millionUS manufacturing employment, 2000 to 2010
Junior share of technical staff 21% to 14% since early 2025; of technical hires 27% to 9%.
27% to 9%junior share of technical hires since early 2025
Geopolitical risk is the top external uncertainty, as in 17 of the last 19 quarters.
66 CFOsrespondents, including 12 FTSE 100 and 25 FTSE 250 companies, surveyed 17 September to 1 October
52 per cent of euro-area workers use AI at work, up from 26 per cent in 2024.
52 per centeuro-area workers reporting AI use at work, up from 26 per cent in 2024 (ECB household survey)
30% of all businesses use at least one AI technology, stable on June 2026 and up 20 points since September 2023 (9%).
30%UK businesses using at least one AI technology in September 2026, up from 9% in September 2023
Underlying GDP growth about 3%; non-farm productivity likely above 2.5% a year in 2024-2026, more than double the pre-pandemic decade.
36 percent ... Now it's 27 percentbachelor's over associate degree earnings premium at ages 22-24, then vs now
AI mentions in full-time job ads spiked in 2024Q3, almost entirely the phrase "artificial intelligence" in tech roles; 95% of that spike came from employers changing wording, and it faded fast.
3.1 percentage pointrise in the share of job ads mentioning AI per standard deviation of LLM exposure
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Leaders feel less prepared to manage disruption than earlier in 2026, down seven percentage points on average.
23%C-suite leaders reporting widespread, sustained business value from AI, down from 32% earlier in 2026
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Spending: median expected 2026 AI spend $12,500 at small firms and $300,000 at large firms; about 30% of large firms plan to spend over $1 million.
less than 0.4%expected AI-driven decline in US employment in 2026, implying 501,836 fewer jobs (95% CI 262,279 to 741,394)
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67% of executives expect physical AI to transform their industry (US 73%, Europe 64%, APAC 67%); 64% expect it to become a critical driver of competitiveness.
79% / 27%organizations engaging with physical AI / deploying or scaling it
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More than half of firms have invested in AI.
1.8%mean CFO-reported labour productivity gain from AI in 2025, against 0.6% implied by revenue and employment changes