A 'jobless profit boom' has cemented a permanent loss in payrolls as AI displaces labor at a faster rate, strategist says

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Booming corporate earnings and a slumping labor market have been telling very different stories lately, and AI is the likely explanation, according to Chen Zhao, chief global strategist at Alpine Macro.

That dichotomy is exemplified in the tech sector, which has seen profits soar while employment has been in a “recession” for three years, he said in a Monday note titled “A Jobless Profit Boom.”