The Complex Relationship Between AI and the Economy
Since the launch of ChatGPT, the American economy has experienced a striking divergence: job openings have plummeted by 30%, while the stock market has surged by 70%. This phenomenon, dubbed the “scariest chart in the world,” raises questions about the impact of artificial intelligence on the job market. However, economist Derek Thompson argues that the narrative is more nuanced, pointing to monetary policy as a significant factor behind these trends.
The peak in job openings occurred in March 2022, coinciding with the Federal Reserve’s decision to raise interest rates, rather than the launch of ChatGPT. This suggests that while AI is indeed transforming certain sectors, the broader economic landscape is shaped by a combination of factors, including trade policies and immigration enforcement. Interestingly, sectors most closely tied to AI have not seen the steepest declines in job openings; instead, manufacturing and construction have taken the hardest hits.
As we navigate this dual economyone thriving on AI advancements and another struggling under various pressuresit’s crucial to understand the underlying forces at play. Are we witnessing a sustainable growth model, or are we on the brink of an unsustainable bubble? The answers may redefine our approach to technology and its role in the economy.
Original source: https://fortune.com/2025/10/31/chatgpt-job-openings-stock-market-sp500-scariest-chart-world-derek-thompson-monetary-policy/