"A warning sign we shouldn’t ignore": Thousands of jobs gone as AI hits Irish
· IrishCentralThe finding was noted in a Labor Force survey earlier this year, which showed a drop of 20,000 jobs in the information and communications technology (ICT) sector, and was shared with Mr Harris as Finance Minister.
It comes after China’s President Xi Jinping last week said his country and the US have a responsibility to "develop and manage AI for good"
Earlier this month, Extra.ie reported plans to replace mid-ranking civil service jobs with AI. The Labor Force report said: "There is now growing evidence that AI is beginning to have an impact on our labor market, particularly among younger cohorts in highly digitized sectors. Employment in the ICT sector fell by 20,000 jobs year-on-year, driven by a decrease of 16,200 jobs in the computer programming and consultancy subsector."
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The report from May added: "It is worth noting Labour Force survey estimates are often volatile and subject to revision, reflecting the nature of data from survey-based responses. Other indicators, including Revenue administrative that Laborpoint to continued growth in employment in the first quarter, with employee numbers increasing by 2.5% (+62,700) on an annual basis. Income tax receipts have also been strong in the year-to-date – up 5.7% on an annual basis in the year to end-April."
Speaking points prepared for Minister Harris to deal with the report note that his department was "active" in assessing the "emerging impact of AI on the labor market". It went on: "Indeed, research from my department shows 'AI-exposed' sectors have experienced weaker employment growth relative to less-exposed sectors, with these effects strongest among younger workers in highly digitized sectors.
"At the same time, we know AI presents significant opportunities to enhance productivity and strengthen our competitiveness. As such, policy will need to be proactive – supporting workers in exposed sectors to upskill and re-skill where necessary, and continuing to provide enterprise supports that help firms to adopt and deploy AI technologies."
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The report also notes that "as one of Europe’s most digitally advanced economies, Ireland is likely to be at the forefront of these changes".
Fine Gael TD James Geoghegan, a member of the Oireachtas Committee on Artificial Intelligence, said AI was going to ‘change the jobs market’ and that Ireland "needs to be ready" for it.
He said: "The fall of 20,000 jobs in ICT, particularly affecting younger workers, is a warning sign we shouldn’t ignore. OpenAI’s recent announcement of 250 new jobs in Dublin is a good example of the opportunities AI can bring. Our job now is to make sure Ireland captures as many of those new jobs as possible, while ensuring our workers continue to have the skills to take them."
He said Ireland was coming at the issue from "a position of real strength", with a record 2.84million people at work, and the International Monetary Fund (IMF) ranking us at the ‘very top’ for having the skills needed for the AI economy.
However, responding to a parliamentary question last week, Peter Burke, the Enterprise Minister, said the effects of AI on the labor market may be "moderating". He said: "Recent evidence suggests employment growth in more AI-exposed sectors has moderated, highlighting the importance of monitoring labour market trends as AI adoption increases.
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"While AI offers significant opportunities to enhance efficiency, support innovation and create new forms of employment, it also presents labor challenges that must be carefully managed, including the need for ongoing skills development, workforce adaptation and inclusion."
Dr Conor O’Toole, from the Economic and Social Research Institute (ESRI), told the Oireachtas Budgetary Oversight Committee last week that technology-related employment may be "more sensitive to AI replacement" in an economy like Ireland’s, meaning "near-term displacement could occur to jobs".
And in the Seanad, Patricia Stephenson from the Social Democrats also warned about the effects of AI on the labour market for young people.
She said: ‘We are seeing a shift in the labour market, with the proliferation of AI disrupting traditional entry routes and early career roles in the jolaboret. It is young people who are at the coalface of this challenge: entry-level jobs are dwindling, which makes it even more difficult to afford rent and move out of home.’
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The Government is considering replacing middle management and administrative roles in the public service with AI. Ministers stressed the long-term plan will not result in mass lay-offs but will aim to free up personnel who can be redeployed.
It is one of several strategies under consideration within the Department of Public Expenditure to stem "unsustainable" layoffs within public sector recruitment and pay costs.
Senior Cabinet figures said upskilling employees and transferring public sector employees elsewhere within the public service could take between five and ten years to complete fully.
Additional reporting by Brian Mahon.
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* This article was originally published on Extra.ie.