You know the deal: AI is the villain, the thing that all the college kids are booing at commencement speech, the bringer of destruction to the labor market. Since the launch of ChatGPT in late 2022, the anxiety has mounted along with the predictions of the demise of white-collar work.
But nearly four years later, Goldman Sachs economists have a surprising update. The mismatch between workers and available jobs—a key barometer of labor market stress—has actually improved since that moment, falling below its pre-pandemic level. The traffic jam, in other words, is clearing.
