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"When the next recession hits, millions of jobs will vanish — and most won’t return. Companies will turn to AI to cut costs instead of rehiring, with the data suggesting it’s already happening. And beneath the AI hype lies a weakening job market few are talking about.
So that's why today, we’re breaking down why the labour market isn’t as strong as it seems, which jobs are vanishing to AI, what it all means for markets — and for you. Enjoy!"
~ Coin Bureau
The video warns that millions of jobs will be lost in the next recession, and unlike previous downturns, many of those jobs will not return because companies are increasingly using AI to cut costs and replace human workers. While the official US unemployment rate appears low, the global jobs market is showing signs of weakness, with rising unemployment in countries like Germany and China. Furthermore, US labor data is misleading, as it often fails to account for gig workers who are losing traditional jobs and the increasing number of Americans working multiple or part-time jobs just to make ends meet. The flipping of the ratio between unemployed Americans and job openings is identified as a major red flag, indicating a shift in power away from workers. This situation is particularly dangerous because markets are currently near record highs even as underlying labor data deteriorates, a sequence not typically seen before a recession.
The jobs most at risk are entry-level white-collar roles in sectors like finance, consulting, and law, which rely on repetitive "drudge work" that AI now excels at, such as data processing and drafting summaries. This has led to a significant drop in job postings for new college graduates, whose unemployment rate is now higher than the general US workforce for the first time in over 45 years. Companies are quietly automating these roles, often requiring 3 to 5 years of experience for "entry-level" positions to limit applications before the role is eliminated entirely. Conversely, roles that require a "human touch" or manual labor, such as healthcare, education, and skilled trades like plumbing and electrical work, are holding steady because they are less susceptible to automation. Corporations are driven to replace human talent with AI and robotics to maximize shareholder profit, viewing labor as a cost to cut, which has triggered a massive, multi-trillion-dollar capital expenditure mania in AI infrastructure, with investment continuing despite many companies seeing zero returns, fuelled by the race for artificial general intelligence.
0:00 Intro
0:55 The Labour Market
3:46 The White-Collar Wipeout
7:37 Why CEOs Love the Layoffs
10:19 The Geopolitical Arms Race
13:14 What Does All This Mean for Markets and You?
Source - Coin Bureau YouTube: https://www.youtube.com/watch?v=2LtMvEI0Qyk
Disclaimer: This video is provided for informational purposes only, and not offered or intended to be used as legal, tax, investment, financial, or any other advice.
