The Recent Evolution of AI-Related Labor Demand

Kevin Rinz

No 26-24, Working Papers from Federal Reserve Bank of Cleveland

Abstract: AI mentions in US job advertisements have increased substantially since the beginning of 2024. The increase is concentrated in occupations more intensely exposed to the capabilities of large language models: one additional standard deviation of exposure is associated with a 3.1 percentage point increase in the rate at which job ads mention AI. Alongside this increase in AI mentions, more exposed occupations have seen job postings stabilize after a period of relative decline, posted wages rise, and hires and separations rise, all relative to less exposed occupations. Realized wages for new hires have risen consistent with posted wages, while wages of continuously employed workers have declined, possibly because exposed occupations have seen labor markets become less tight.

Keywords: artificial intelligence; labor demand; skills; job postings (search for similar items in EconPapers)
JEL-codes: J23 J24 O33 (search for similar items in EconPapers)
Date: 2026-09-24
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DOI: 10.26509/frbc-wp-202624

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