How to Best Prepare for the AI Jobs Apocalypse: Companies are turning to AI to boost profits – and it’s working (Luke Lango, 8/28/InvestorPlace)
This quarter, on average, companies across the S&P 500 reported nearly 10% earnings growth.
That is one of the best earnings growth rates the S&P 500 has reported since the COVID-19 pandemic emerged in 2020.
At the same time, unemployment rates are rising sharply. Indeed, earlier this year, the national unemployment rate stood at 3.7%. Since then, it has spiked to 4.3%. Most folks expect it to keep rising.
In other words, right now… unemployment is rising… while corporate profits are also soaring.
That’s unusual. And it tells us that companies are using AI to replace human labor and productivity – and boost profits.