AI is waging war on white-collar jobs. It won't end well

The history of revolutions warns of the political dangers of an alienated educated elite in a future where ‘digital humans’ displace biological ones.

- Adrian Wooldridge

In October 1996, at the last party conference before the election that would make him UK prime minister, Mr Tony Blair tried to define the essence of New Labour. He started off by contrasting his party with the dying Conservative government before summarising his three priorities for power.

They were, in order, “education, education and education”. The applause was thunderous — and, unlike the applause in recent Labour gatherings, genuine.

The idea that “education is the best economic policy” was at the heart of the progressive bargain with the market. Then US President Bill Clinton said that “the information age is, first and foremost, an education age”.

The World Bank and the International Monetary Fund insisted that education is the golden key to growth and inclusion. Universities enjoyed the longest period of expansion in their history as governments tried to make sure that half their young people graduated.

Well, here is the latest message on education from the corporate elite: Take your sheepskin and shove it.

Amazon.com, one of the trendsetters of global business, recently announced that it is eliminating almost 10 per cent of its corporate workforce.

Other companies that have decided to wield the axe include consultancies (Booz Allen Hamilton), carmakers (General Motors), retailers (Target) and service companies (United Parcel Service).

Graduates are entering the most challenging job market in years, with entry-level roles disappearing and summa cum laudes scrabbling for crumbs. Even newly minted economics PhDs no longer have a 100 per cent employment rate.

Yet at the same time, opportunities for skilled blue-collar work are growing.

Companies report shortages of workers in healthcare, hospitality and, more importantly, engineering and construction.