Job Finding and Unemployment in the Age of AI

A Cleveland Fed Economic Commentary finds that since generative AI became widely available, unemployment for workers aged 23–54 rose about 1 percentage point more in occupations most exposed to AI than in the least exposed, relative to a 2015–2019 baseline, with a larger gap for ages 23–30. Using CPS panel data and three AI-exposure measures, the authors attribute the rise mainly to lower job-finding rates in highly exposed occupations rather than higher separation rates, suggesting AI may be making it harder to enter these occupations rather than displacing existing workers.