Signal

US professional services added 70K jobs in October, the most since July 2022, as AI-exposed consulting, legal, and accounting all grew despite AI job-loss fears

First reported by WSJ ·

The signal ●●●● Compiled by AI from WSJ, Techmeme, Washington Post and The Philadelphia Inquirer
Why you might care

Jobs in consulting, legal, and accounting sectors grew more in October than any month since mid-2022.

What happened

In October, the US professional services sector added 70,000 jobs, the highest monthly increase since July 2022. This growth occurred across consulting, legal, and accounting fields, which are often considered susceptible to AI disruption. Despite widespread concerns that artificial intelligence will lead to job losses, these sectors continued to expand. The article highlights instances of workers leaving perceived AI-vulnerable white-collar roles, such as marketing and software development, to pursue careers in trades like electrical work and automotive repair, or in human-centric professions like teaching and nursing. Enrollment in teacher training programs and apprenticeships has seen significant increases, with many new participants citing fears of AI-related job displacement as a primary motivator. While AI is seen as a threat, demand for skilled trades, particularly in infrastructure and retirement of older workers, continues to drive job growth.

What it means

Younger workers and recent graduates are increasingly pivoting away from traditional white-collar careers that show high AI exposure, such as marketing and software development. Instead, they are seeking alternative paths in vocational trades and human-facing professions like teaching and healthcare. This shift is evidenced by a 43% increase in enrollment at Teach for America and a 30% jump in applications to alternative teacher training programs. Similarly, enrollment in registered apprenticeships for younger individuals has risen 20% from 2022 to 2024, indicating a broader trend towards hands-on or service-oriented roles perceived as more resistant to automation.

The demand for skilled trades is being amplified by both fears of AI job displacement and a concurrent wave of retiring older workers, creating substantial growth opportunities. Sectors like construction and automotive repair are experiencing job growth rates double or triple the average, with specific roles like electricians and HVAC technicians in high demand. This burgeoning need, coupled with the narrative of AI-proofing careers, is compelling trade schools to report significant enrollment increases, with many applicants explicitly stating their concern about AI's impact on their previous career paths as a reason for their change.

AI-written summary. May contain errors.