White-Collar Output Jumps 16% as Employment Falls 2% Since 2022
Updated
Updated · Business Insider · Oct 12
White-Collar Output Jumps 16% as Employment Falls 2% Since 2022
3 articles · Updated · Business Insider · Oct 12
Summary
Finance, insurance, information, and professional services have shed about 2% of jobs since late 2022 even as their real output climbed 16%, a break from the usual pattern of growth bringing more hiring.
Software, cloud and IT providers are absorbing work once done by consultants, call centers and back-office staff, while employers increasingly use AI for junior and administrative tasks.
That shift has left a low-hire, low-fire market in white-collar fields, with economists saying firms can meet demand with fewer workers and are pulling back most on younger and entry-level hires.
Economists say the gap raises a broader risk: GDP can keep growing without lifting job prospects or living standards as much, and some productivity gains predate the recent AI boom.