One chart defines the next decade of innovation and jobs.

This chart may well turn out to be the story of the decade.

Thanks to artificial intelligence, the technology sector’s impact on economic growth is accelerating even as its share of total jobs shrinks.

In 2021, the year before ChatGPT debuted, the information and technology sector contributed 0.22% to real GDP growth.

By 2025, that’s climbed to 0.56% — more than a 150% increase in four years.

Employment meanwhile tells the opposite story.

The sector in question accounted for 0.08% of job growth in 2021. This year that has turned outright negative to cap an 87% decline in four years.

It’s a snapshot of how AI enables more with less.

As technological output and innovation surge forward, payrolls in the economy’s most closely watched sector are contracting.

For decades, economic progress and job creation moved hand in hand. When there was work to do, companies and governments filled factories and offices with armies of employees to meet productivity goals.

AI is severing that relationship in real time.

Large language models, cloud tools and robotics are decoupling output from employment, opening the door for economic growth to accelerate even as job creation dwindles.

In the near term, this dynamic boosts efficiency and margins.

It’s a clear win for shareholders of the largest and most advanced companies in the world — capital will continue to flow to firms that can scale without hiring.

Revenue per employee will explode, bringing the top-heavy stock market with it.

The advantages become clear when I think about my media startup, Opening Bell Daily.

My co-founder and I haven’t had to hire any employees since launching in early 2024 because so much of our work is streamlined by AI.

What costs us $20 a month today would have required several full-time salaries just a couple years ago. AI has simply raised the bar for hiring to the point that adding headcount is hard to justify.

When you look beyond quarterly earnings reports, the outlook turns murkier.

We don’t exactly know what happens to an economy, its workforce and social contract when demand for human labor collapses.

The fluctuations in GDP and payroll contributions offer a window into the defining paradox of the AI era: Fewer people are needed to drive more prosperity.

It’s at once exciting, strange, and difficult to grasp.

While the chart above focuses only on the technology sector, I sense that it’s a preview of what’s to come for the broader economy.

If it takes fewer workers to generate more output in the most innovative industry, the same thing will likely happen across less disruptive sectors others, too.

https://www.inc.com/phil-rosen/ai-outlook-labor-jobs-market-investing-career-engineers-artificial-intelligence-business/91240002

(http://www.autoadmit.com/thread.php?thread_id=5775221&forum_id=2#49271446)