The rise of artificial intelligence (AI) is significantly impacting the job market, with an estimated 5 million white-collar jobs at risk of automation, according to a Microsoft analysis from late 2025. Positions such as management analysts and customer service representatives are increasingly being replaced by AI software, which companies prefer over costly human labor. This shift is contributing to the phenomenon known as “CHAOS Economics,” where GDP can rise while real wages stagnate or decline, leading to widespread economic disparity.
As of 2026, the unemployment rate stands at 4.6%, with over 1.1 million layoffs reported in the previous year— the highest since the COVID-19 pandemic. Meanwhile, consumer sentiment has fallen to 51, nearing all-time lows. Despite corporate profits hitting record highs, the gap between the wealthy and the working class continues to widen, echoing historical trends observed during the Industrial Revolution.
