Amid fears of AI-driven layoffs, Apollo Global Management's chief economist Torsten Sløk presents a contrasting viewpoint. In a blog post published last week, Sløk argued that there is currently "zero evidence of job losses because of AI" and instead highlighted a growing demand for workers with AI-related skills.
Demand for AI Specialists and Data Center Jobs
According to Apollo's chief economist, companies are actively hiring AI specialists, and the rapid expansion of data centers is creating additional jobs while pushing up demand for semiconductors, equipment, and energy. Sløk cited employment data from the ADP National Employment Report to support his analysis, asserting that fears of widespread AI-driven layoffs are not yet backed by evidence.
"Many firms are hiring AI implementation experts, and the data center buildout is putting upward pressure on salaries for AI experts and on prices of semiconductors, equipment and energy," Sløk wrote. "The bottom line is that the AI spending boom is stoking both employment and inflation," he added.
The latest ADP report revealed that private employers added nearly 110,000 jobs in April. Sløk noted that this figure reflects continued demand for workers despite rapid AI adoption across industries. He also suggested that strong AI-related spending could boost future payroll growth. "As a result, nonfarm payrolls for May could come in significantly higher than the 95,000 expected by the consensus," Sløk wrote.
Jevons Paradox in Action
Torsten Sløk argued that the current AI boom exemplifies what economists call the "Jevons paradox." This concept suggests that when technology makes something more efficient and cheaper, demand for it often increases rather than declines. "It is Jevons paradox playing out in real time: cheaper technology is creating more demand and more jobs," he wrote.
The Jevons paradox is an economic concept describing a pattern where efficiency gains in resource use lead to increased total consumption, not decreased. Sløk has made similar arguments before. In an earlier blog post from April, he stated that lower costs brought by AI are likely to increase both productivity and employment rather than reduce workforce numbers.
This perspective challenges the prevailing narrative that AI will lead to mass unemployment. Instead, Sløk emphasizes that the AI spending boom is generating new opportunities and driving economic growth.
