The wave of layoffs sweeping through the tech industry, surpassing 260,000 in 2023 and continuing into 2024, is signaling a broader trend that experts believe could reshape the nature of employment.
Despite a robust job market in non-tech sectors, the ongoing job cuts in tech companies raise concerns about the future of "thinking" jobs across various industries.
Roland Rust, a Distinguished University Professor and David Bruce Smith Chair in Marketing for the University of Maryland's Robert H. Smith School of Business, emphasized the narrative surrounding these layoffs that often overlook a critical context.
According to Rust, the downsizing in tech firms foreshadows a larger decline in "thinking" jobs within the broader labor market.
"The ongoing job cuts by tech firms foreshadows a broader decline of 'thinking' jobs across the broader labor market that will increasingly force people to look for more 'feeling' jobs," Rust said in a statement.
'Thinking' Jobs on Decline Due to AI?
Thinking jobs traditionally involve tasks entailing high levels of cognitive engagement, problem-solving, analysis, and decision-making. These jobs often rely on individuals' ability to process complex information, utilize critical thinking skills, and render strategic judgments.
Reflecting on his past research, Rust highlighted a study conducted in 2018, wherein he and co-author Ming-Hui Huang predicted the emergence of this phenomenon.
Subsequent empirical evidence provided in a 2019 article, along with insights consolidated in their 2021 book, "The Feeling Economy: How Artificial Intelligence is Creating the Era of Empathy," further emphasized this trend.
As AI continues to evolve, Rust argued, it increasingly assumes tasks traditionally performed by humans, necessitating a shift in the labor force towards skills that complement rather than compete with artificial intelligence.
He emphasized the importance of attributes, like intuition, empathy, creativity, and interpersonal skills in navigating this transition. Pointing to recent developments, Rust illustrated how jobs once deemed "thinking"-intensive are evolving into roles that prioritize "feeling" aspects.
For instance, financial analysts are delegating technical tasks to AI systems, focusing on cultivating client relationships and providing emotional support. This transformation extends beyond the financial sector, as demonstrated by the evolution of customer service roles.
While AI chatbots handle routine inquiries, human representatives now specialize in handling non-routine matters that require judgment, creativity, and emotional intelligence.
Highlighting a case study featured in The Washington Post, Rust cited individuals transitioning from tech careers to fields such as psychology - a trend predicted in his book.
He advocates for a reevaluation of educational priorities, suggesting a shift away from STEM (Science, Technology, Engineering, and Mathematics) towards the development of "people skills."
The Rise of the 'Feeling Economy'
According to Rust, the rise of AI is accelerating the displacement of "thinking" jobs, particularly in the tech sector, paving the way for what he terms the "feeling economy."
This paradigm shift underscores the need for individuals to adapt to evolving job requirements and cultivate skills that are less susceptible to automation.
"As AI evolves to handle much of the thinking required in fields across the labor market, humans need to recalibrate and capitalize on strengths beyond pure intelligence-like intuition, empathy, creativity, emotion, and people skills," Rust noted.
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