Is this the beginning of the end for white-collar jobs?
The scale of the job loss was such that the host of the Game Developers Choice Awards, the industry's annual awards show, complained about 'record lay-offs' during her opening monologue in 2024.
That same year, a unionisation trend that had begun with lower-paid quality assurance testers spread to better-paid workers like game producers, designers and engineers at companies that make the hit games Fallout and World of Warcraft.
At Bethesda Game Studios, which is owned by Microsoft and makes Fallout, workers said they unionised partly because they were alarmed by rounds of lay-offs at the company in 2023 and 2024 and felt that a union would give them leverage in a softening labour market.
'It was the first time that Bethesda had experienced lay-offs in a very, very long time,' said Taylor Welling, a producer at the studio, who holds a master's degree in interactive entertainment. 'That sort of scared a lot of people.' Microsoft declined to comment.
Unemployment in finance and related industries, while still low, increased by about a quarter from 2022 to 2024, as rising interest rates slowed demand for mortgages and companies sought to become leaner.
On an earnings call last northern summer, the chief executive of Wells Fargo noted that the company's 'efficiency initiatives' had pruned its workforce for 16 straight quarters, including a nearly 50 per cent reduction of workers in its home lending division since 2023.
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Then in autumn, Wells Fargo laid off about one-quarter of the roughly 45 employees on its conduct management intake team, which reviews accusations of company misconduct against customers and employees.
Heather Rolfes, a lawyer who was let go, said that she believed the company was seeking to save money by shrinking its US workforce and that she and her colleagues were a tempting target because they had recently sought to unionise.
A Wells Fargo spokesperson said in a statement that the lay-offs had nothing to do with the union and that 'we regularly review and adjust staffing levels to align with market conditions.' He noted that two managers on the team had also lost their jobs.
Atif Rafiq, the author of a book on corporate strategy who has held senior positions at McDonald's and Amazon, said many companies were seeking to emulate Amazon's model of building cross-functional teams that reduce barriers between workers with different expertise, like coding and marketing. In the process, they may discover redundancies and undertake lay-offs.
In a memo announcing the job losses at Starbucks last month, chief executive Brian Niccol cited a goal of 'removing layers and duplication and creating smaller, more nimble teams.' Nissan offered a similar rationale for management cuts announced this month.
Overall, the latest data from the Federal Reserve Bank of New York shows the unemployment rate for college grads has risen 30 per cent since bottoming out in September 2022 (to 2.6 per cent from 2 per cent), versus about 18 per cent for all workers (to 4 per cent from 3.4 per cent).
An analysis by Julia Pollak, chief economist of ZipRecruiter, shows that unemployment has been most elevated among those with bachelor's degrees or some college but no degree, while it has been steady or falling at the very top and bottom of the education ladder – for those with advanced degrees or without a high school diploma.
Hiring rates have slowed more for jobs requiring a college degree than for other jobs, according to ADP Research, which studies the labour market.
Some economists say these trends may be short term in nature and little cause for concern on their own. Lawrence Katz, a labour economist at Harvard University, noted that the uptick in unemployment for college-educated workers was only modestly larger than the increase in unemployment overall and that unemployment for both groups remained low by historical measures.
Katz argued that slower growth in wages for upper-middle-class workers could simply reflect a discount that these workers effectively accepted in return for being able to work from home.
Data from the liberal Economic Policy Institute shows that wages for workers in the 70th and 80th percentiles of income distribution have grown more slowly than those of any other group since 2019.
But there are other signs that the returns on a college degree may have shifted over a longer period. The gap in wages between those with a college degree and those without one grew steadily beginning in 1980 but flattened during the past 15 years, though it remains high.
The flattening may partly reflect the fact that there are more college-educated workers for employers to choose from, as college attendance has increased. But some economists argue that it reflects employers' reduced need for college graduates – for example, fewer jobs like bookkeeping as information technology has become more sophisticated.
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Such jobs don't necessarily require a college degree but were often attractive to graduates because they once paid a relatively high wage.
And artificial intelligence could reduce that need further by increasing the automation of white-collar jobs. A recent academic paper found that software developers who used an AI coding assistant improved a key measure of productivity by more than 25 per cent and that the productivity gains appeared to be largest among the least experienced developers.
The result suggested that adopting AI could reduce the wage premium enjoyed by more experienced coders, since it would erode their productivity advantages over novices.
Mert Demirer, a Massachusetts Institute of Technology economist who was a co-author of the paper, said in an interview that a software developer's job could change over the longer term so that the human coder became a kind of project manager overseeing multiple AI assistants.
In that case, wages could rise as the human became more productive. And AI could end up expanding employment among coders if cheaper software led to even greater demand.
Still, at least in the near term, many tech executives and their investors appear to see AI as a way to trim their staffing.
A software engineer at a large tech company who declined to be named for fear of harming his job prospects said that his team was about half the size it was last year and that he and his co-workers were expected to do roughly the same amount of work by relying on an AI assistant.
Overall, the unemployment rate in tech and related industries jumped by more than half from 2.9 per cent in 2022 to 4.4 per cent in 2024.
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After a swirl of media speculation about the venue of what has been dubbed "the wedding of the century" Brugnaro confirmed in March that it would take place in Venice, which last year began charging tourists a fee to enter the city. The date is expected to be some time between June 23-28 in the midst of three days of stylish celebrations. In the face of early protests from residents who feared the arrival of thousands of celebrities and hangers-on, the city issued a statement clarifying that it would involve around 200 guests and would not disrupt Venetians' everyday life. Bezos and Scott had four children together, while Sanchez was previously married to Hollywood agent Patrick Whitesell, with whom she has two children. She also has a son with NFL tight end Tony Gonzalez. Venice is divided ahead of next week's celebrity wedding of US tech-tycoon Jeff Bezos and Laura Sanchez, with some looking forward to the glitz and glamour, while others fear it will turn the scenic city of gondolas and palazzi into an amusement park. Many details of the wedding are still under wraps - including the precise day it will happen - but it is certain that scores of stars from film, fashion and business will arrive to see Bezos tie the knot - provided they can get past the protesters. One group has plastered banners on the city's famous Rialto Bridge reading "No space for Bezos!" and threatened peaceful blockades, complaining that the medieval and Renaissance city needs public services and housing, not celebrities and over-tourism. "Bezos arrogantly believes he can take over the city and turn it into his own private party venue," said Tommaso Cacciari, a leading light of the "No space for Bezos" campaign. Mayor Luigi Brugnaro and regional governor Luca Zaia, on the other hand, argue that the wedding will bring an economic windfall to local businesses, including the motor boats and gondolas that operate its myriad canals. Eleven years ago actor George Clooney married human rights lawyer Amal Alamuddin in Venice, turning the city into Hollywood on the Adriatic with a weekend of lavish celebrations. Then, locals and tourists alike were excited to witness a memorable moment in the city's long history of hosting stars for its film festival, the world's oldest. Bezos, 61, the founder of e-commerce giant Amazon and the world's third-richest man, got engaged to journalist Sanchez, 55, in 2023, four years after the collapse of his 25-year marriage to Mackenzie Scott. After a swirl of media speculation about the venue of what has been dubbed "the wedding of the century" Brugnaro confirmed in March that it would take place in Venice, which last year began charging tourists a fee to enter the city. The date is expected to be some time between June 23-28 in the midst of three days of stylish celebrations. In the face of early protests from residents who feared the arrival of thousands of celebrities and hangers-on, the city issued a statement clarifying that it would involve around 200 guests and would not disrupt Venetians' everyday life. Bezos and Scott had four children together, while Sanchez was previously married to Hollywood agent Patrick Whitesell, with whom she has two children. She also has a son with NFL tight end Tony Gonzalez. Venice is divided ahead of next week's celebrity wedding of US tech-tycoon Jeff Bezos and Laura Sanchez, with some looking forward to the glitz and glamour, while others fear it will turn the scenic city of gondolas and palazzi into an amusement park. Many details of the wedding are still under wraps - including the precise day it will happen - but it is certain that scores of stars from film, fashion and business will arrive to see Bezos tie the knot - provided they can get past the protesters. One group has plastered banners on the city's famous Rialto Bridge reading "No space for Bezos!" and threatened peaceful blockades, complaining that the medieval and Renaissance city needs public services and housing, not celebrities and over-tourism. "Bezos arrogantly believes he can take over the city and turn it into his own private party venue," said Tommaso Cacciari, a leading light of the "No space for Bezos" campaign. Mayor Luigi Brugnaro and regional governor Luca Zaia, on the other hand, argue that the wedding will bring an economic windfall to local businesses, including the motor boats and gondolas that operate its myriad canals. Eleven years ago actor George Clooney married human rights lawyer Amal Alamuddin in Venice, turning the city into Hollywood on the Adriatic with a weekend of lavish celebrations. Then, locals and tourists alike were excited to witness a memorable moment in the city's long history of hosting stars for its film festival, the world's oldest. Bezos, 61, the founder of e-commerce giant Amazon and the world's third-richest man, got engaged to journalist Sanchez, 55, in 2023, four years after the collapse of his 25-year marriage to Mackenzie Scott. After a swirl of media speculation about the venue of what has been dubbed "the wedding of the century" Brugnaro confirmed in March that it would take place in Venice, which last year began charging tourists a fee to enter the city. The date is expected to be some time between June 23-28 in the midst of three days of stylish celebrations. In the face of early protests from residents who feared the arrival of thousands of celebrities and hangers-on, the city issued a statement clarifying that it would involve around 200 guests and would not disrupt Venetians' everyday life. Bezos and Scott had four children together, while Sanchez was previously married to Hollywood agent Patrick Whitesell, with whom she has two children. She also has a son with NFL tight end Tony Gonzalez. Venice is divided ahead of next week's celebrity wedding of US tech-tycoon Jeff Bezos and Laura Sanchez, with some looking forward to the glitz and glamour, while others fear it will turn the scenic city of gondolas and palazzi into an amusement park. Many details of the wedding are still under wraps - including the precise day it will happen - but it is certain that scores of stars from film, fashion and business will arrive to see Bezos tie the knot - provided they can get past the protesters. One group has plastered banners on the city's famous Rialto Bridge reading "No space for Bezos!" and threatened peaceful blockades, complaining that the medieval and Renaissance city needs public services and housing, not celebrities and over-tourism. "Bezos arrogantly believes he can take over the city and turn it into his own private party venue," said Tommaso Cacciari, a leading light of the "No space for Bezos" campaign. 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After a swirl of media speculation about the venue of what has been dubbed "the wedding of the century" Brugnaro confirmed in March that it would take place in Venice, which last year began charging tourists a fee to enter the city. The date is expected to be some time between June 23-28 in the midst of three days of stylish celebrations. In the face of early protests from residents who feared the arrival of thousands of celebrities and hangers-on, the city issued a statement clarifying that it would involve around 200 guests and would not disrupt Venetians' everyday life. Bezos and Scott had four children together, while Sanchez was previously married to Hollywood agent Patrick Whitesell, with whom she has two children. She also has a son with NFL tight end Tony Gonzalez.
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Venice is divided ahead of next week's celebrity wedding of US tech-tycoon Jeff Bezos and Laura Sanchez, with some looking forward to the glitz and glamour, while others fear it will turn the scenic city of gondolas and palazzi into an amusement park. Many details of the wedding are still under wraps - including the precise day it will happen - but it is certain that scores of stars from film, fashion and business will arrive to see Bezos tie the knot - provided they can get past the protesters. One group has plastered banners on the city's famous Rialto Bridge reading "No space for Bezos!" and threatened peaceful blockades, complaining that the medieval and Renaissance city needs public services and housing, not celebrities and over-tourism. "Bezos arrogantly believes he can take over the city and turn it into his own private party venue," said Tommaso Cacciari, a leading light of the "No space for Bezos" campaign. Mayor Luigi Brugnaro and regional governor Luca Zaia, on the other hand, argue that the wedding will bring an economic windfall to local businesses, including the motor boats and gondolas that operate its myriad canals. Eleven years ago actor George Clooney married human rights lawyer Amal Alamuddin in Venice, turning the city into Hollywood on the Adriatic with a weekend of lavish celebrations. Then, locals and tourists alike were excited to witness a memorable moment in the city's long history of hosting stars for its film festival, the world's oldest. Bezos, 61, the founder of e-commerce giant Amazon and the world's third-richest man, got engaged to journalist Sanchez, 55, in 2023, four years after the collapse of his 25-year marriage to Mackenzie Scott. After a swirl of media speculation about the venue of what has been dubbed "the wedding of the century" Brugnaro confirmed in March that it would take place in Venice, which last year began charging tourists a fee to enter the city. The date is expected to be some time between June 23-28 in the midst of three days of stylish celebrations. In the face of early protests from residents who feared the arrival of thousands of celebrities and hangers-on, the city issued a statement clarifying that it would involve around 200 guests and would not disrupt Venetians' everyday life. Bezos and Scott had four children together, while Sanchez was previously married to Hollywood agent Patrick Whitesell, with whom she has two children. She also has a son with NFL tight end Tony Gonzalez.
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AI threatens entry-level jobs as university grads struggle to get hired
Australian workers are facing a major upheaval as artificial intelligence (AI) becomes a cheaper alternative to employing humans. While the full impact of AI is yet to be reflected in job ads or official employment statistics, both employers and employees warn the technology is already reshaping the nation's labour market. It took recent data science graduate Tien Hung Nguyen 30 applications and an internship to land his first full-time job. "I feel privileged to have secured this position. I'm going to give everything I've got," he says. Most of his friends are still looking for work — and he says artificial intelligence is a big reason why. "Since AI appeared, for example, a team might have needed three or four juniors and a senior. Now, it's one junior and AI," Mr Nguyen explains. In countries where AI is more advanced, such as the United States, lay-offs are speeding up. Amazon is the latest big employer to warn of looming job losses. There are also reports Microsoft is shaping up to clean out more staff whose tasks can be completed by AI. There are also worrying signs for young workers in the US, as the unemployment rate for recent college graduates nears 6 per cent. In Australia, the unemployment rate is holding steady at 4.1 per cent. However, the jobless rate for young people — which is typically higher than the overall rate — has risen slightly to 9.2 per cent. Economist Leonora Risse says youth unemployment is a key indicator. "Young people tend to be the group that experience the greatest volatility in the labour market," she warns. Mr Nguyen now works at an AI start-up, where much of the low-level admin work has already been handed over to machines. His employer, Julian Fayed, says the shift is accelerating. "Our technology is advancing, and our AI implementations are advancing at a rate that means that our headcount isn't really growing anymore," he says. "A lot of the lower-level tasks our team didn't enjoy doing, AI can now do 24 hours a day, seven days a week. "No sick days. That's the slightly dark joke." Beyond small tech start-ups, some of the country's biggest employers are also preparing for a leaner future. Telstra CEO Vicky Brady has been up-front at several public events about how advances in AI will result in job cuts. "We know that work is going to look very different in 2030 — and so will we," Ms Brady told a recent investor briefing. CBA boss Matt Comyn made similar comments when he appeared at the Australian Financial Review's AI summit in Sydney this month. "It's hard to make predictions," Mr Comyn said. "But I think in some areas, it's reasonable to say the workforce will be smaller." Dario Amodei — CEO of US-based AI company Anthropic — has warned that up to 50 per cent of entry-level white-collar jobs could disappear within five years. Aaron Matrljan from recruitment agency Aura agrees junior positions will be among the first to go. "Things that we would get juniors to be trained on — that would usually be a learning exercise for them — can now be done so much more cheaply and effectively by AI in a matter of seconds," he explains. Mr Matrljan says his professional services clients are all talking about AI. Mr Matrljan expects to see job cuts because of AI becoming more common within the next two years, and believes slower economic conditions will only speed up the take-up of technology. "The next intake of graduates is going to be really interesting, and firms are going to have to work out where they're gaining those efficiencies, where they're gaining the cost savings, and how many grads do we need, how many trainees do we need to do the tasks that AI can do now so much quicker." Businesses that don't adopt AI risk being left behind, particularly as the technology promises major productivity gains. The optimistic view of AI is that the technology won't replace human workers but instead allow them to take on higher-level tasks. "Productivity is about shifting our time away from the lowest value activities and the lowest value tasks that can be done by automation or AI or computers, and reallocating our time towards the most valuable uses, the most purposeful and meaningful uses," Dr Risse argues. Dr Risse said AI can be of huge benefit to workers if the transition is managed equitably. "If you have higher labour productivity, you have a case for a higher wage," she explains. Some jobs will inevitably be replaced by AI, particularly routine roles that are easier to automate because they follow predictable, repetitive patterns. The reality is, as Dr Risse says, some workers will need to find new jobs in new industries. "The care and community sector is growing, particularly as a result of the aging nation. We need humans. We need people in those sectors," she argues. "But for some people in areas like banking or finance, that can feel like a big leap." As AI advances, the question is no longer if it will dramatically change the workforce, but how quickly, and whether Australia's job market can adapt in time. Mr Fayed believes there'll always be white-collar jobs for the right candidate. However, landing a position is likely to become more competitive. His advice to students is blunt. "For anyone thinking about what to study — you absolutely should be considering whether your future role is at risk from AI," Mr Fayed said. "I do think this is going to be very, very disruptive." There's also a risk for companies that cut too deep — they could lose the pipeline of workers who would eventually move into mid-level and senior roles. "Firms are going to have to … work out where they're gaining those efficiencies, where they're gaining the cost savings … how many grads do we need, how many trainees do we need to do the tasks that AI can do now so much quicker," Mr Matrljan says. "What that's going lead to is the next two to four years it's going be really interesting to see, because there's not as many juniors coming through the ranks … have we lost a lot of knowledge at that level?"
