Triangle job market is a roller coaster – AI will make it worse, report says

RESEARCH TRIANGLE PARK — The summer season has been nothing short of a roller coaster ride for job seekers and employers alike.

Job openings in the Triangle fell this week, according to the most recent edition of the WRAL TechWire Jobs Report.

This decline in openings puts an end to the upward trend from the last two weeks.

It’s also sobering news after Monday’s positive report that tech job openings in Triangle and across NC climbed for 2nd straight month, according to data from NC TECH.

Tech job openings in Triangle, NC climb for 2nd straight month

This week, the tally of job posts fell by 7,683 posts this week, showing a total of 224,065 active listings (not accounting for post duplications). Overall, postings are down 33% compared to this time last year.

NC No. 29 in ranking of changes to unemployment rate by state

While job numbers continue to shift in the Triangle, the state overall continues to show a tight labor market, with an unemployment rate of 3.3% in July 2023.

North Carolina is No. 29 on a ranking of states affected by changes in unemployment, according to a recent WalletHub report.

Source: WalletHub

The unemployment rate dropped only .7% from June 2023 to July 2023 but dropped 11.4% from year to year, looking at July 2023 compared to July 2022.

What’s in store for the rest of the year? In a word: Disruption

Associate Professor of Management at Marshall University Ralph McKinney said in the report that “disruption” is what’s in store for the job market for the rest of this year.

McKinney shared in the report that disruption from AI, remote work trends, and financial conditions will trigger continued changes to the 2023 job market.

Plus, there’s this from IBM CEO Arkind Krishna: AL is going to take white collar jobs first.

IBM CEO warns: First jobs lost to AI will be ‘white collar’

“Disruption from artificial intelligence (AI) and technology will influence many jobs as organizations consider how to become more efficient and their workforce needs,” said McKinney. “Organizations may consider how to utilize AI to improve operations and automate some processes. This generally reduces the need for human talent. Hence, some workers may find they have been made redundant through AI integration.”

McKinney also said disruptions like AI and remote work could shift the “traditional workforce.”

“Organizations with rigid policies on employment practices and requirements may soon find that applicant pools are smaller than expected as jobseekers may choose elsewhere to apply,” said McKinney. “Employment is a two-way relationship. That is, the employer needs the worker, and the jobseeker wants the job. An emphasis on jobseekers’ wants as unemployment rates are lower, which translates to a reduction in jobseekers to fill those applicant pools. Hence, higher compensation may not be enough to attract jobseekers, as flexible working conditions appear to be in greater demand.”

Looking ahead to the rest of 2023, McKinney said that financial conditions could trigger disruptions.

“For example, higher interest rates require organizations to pay more on their obligations,” said McKinney. “This action means that less is available for employee compensation and company educational programs such as training and development. Some industries that have higher amounts of debt may be forced to consolidate operations through a reduction in their workforce. They may choose to sell part of their operations or devolve those units. Either way, this changes where the worker will go.”