Robert Reich Warns AI is Killing Jobs: Unemployment 0.5% Higher in Exposed Roles

wfithian · x · 2026-08-13

Former US Secretary of Labor Robert Reich argues that AI's economic risks are gigantic while its benefits remain unproven. He points out that the US labor market is already showing strain, with unexpected job losses in July and wage growth hitting a five-year low.

Citing research from Morgan Stanley and Apollo economists, Reich notes that unemployment is 0.5 percentage points higher in AI-exposed occupations. Wage growth in these roles has contracted by 6.7% since 2023, causing at least $28 billion in losses for 5.8 million workers. He suggests employers are anticipating needing fewer workers, pushing the narrative that AI's costs currently outweigh its proven benefits.

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