The Next Labor Crisis May Be Too Few Workers. Could AI Help Pick Up the Slack?

The advent of artificial intelligence has led to worries that the U.S. faces a future where there will be too few jobs for workers to fill. But the challenge for the economy could be just the opposite: A sharp slowing in the number of people entering the workforce that leads to an unprecedented era of labor scarcity.

It is a development that could profoundly reshape how the economy operates, according to an analysis by Steven Ruggles, a leading demographer. Ruggles says the shift could bolster workers’ bargaining power and drive wages higher.