Apollo Global Management's chief economist does not agree with AI causing large-scale layoffs; says: Bottom line is that AI spending boom is creating both jobs and ...

Amid fears of AI-driven layoffs, Apollo Global Management's chief economist Torsten Sløk tells a different story. In a blog post published last week, Sløk argued there is currently "zero evidence of job losses because of AI" and instead pointed to growing demand for workers with AI-related skills. According to Apollo’s chief economist, companies are actively hiring AI specialists while the rapid expansion of data centers is creating additional jobs and pushing up demand for semiconductors, equipment and energy. In his analysis, Torsten Sløk cited employment data from the ADP National Employment Report and argued that fears of widespread AI-driven layoffs are not yet supported by evidence.“Many firms are hiring AI implementation experts, and the data center buildout is putting upward pressure on salaries for AI experts and on prices of semiconductors, equipment and energy,” Sløk wrote. “The bottom line is that the AI spending boom is stoking both employment and inflation,” he added.According to the latest ADP report, private employers added nearly 1,10,000 jobs in April, a figure Sløk says reflects continued demand for workers despite rapid AI adoption across industries.He also suggested that strong AI-related spending could help boost future payroll growth. “As a result, nonfarm payrolls for May could come in significantly higher than the 95,000 expected by the consensus,” Sløk wrote.Torsten Sløk argued that the current AI boom is an example of what economists call the "Jevons paradox," which suggests that when technology makes something more efficient and cheaper, demand for it often increases rather than declines."It is Jevons paradox playing out in real time: cheaper technology is creating more demand and more jobs," he wrote.For those unaware, Jevons paradox is an economic concept which describes the pattern where efficiency gains in resource use result in increased total consumption — not decreased.The economist has made similar arguments before. In an earlier blog post published in April, Sløk said that lower costs brought by AI are likely to increase both productivity and employment rather than reduce workforce numbers.