Has the decline of knowledge work begun?

Unemployment rate for college graduates has risen faster than for other workers in recent years

- NOAM SCHEIBER

When Starbucks announced last month that it was laying off over 1,000 corporate employees, it highlighted a disturbing trend for white-collar workers: Over the past few years, they have seen a steeper rise in unemployment than other groups, and slower wage growth. It also added fuel to the debate: Are the recent job losses merely a temporary development? Or do they signal something irreversible?

After sitting below 4 percent for more than two years, the US unemployment rate has topped that threshold since May. Economists say that the job market remains strong by historical standards and that much of the recent weakening appears connected to the economic impact of the pandemic. Companies hired aggressively amid surging demand, then shifted to layoffs once the Federal Reserve began raising interest rates.

But amid rapid advances in artificial intelligence and Trump's targeting of federal agencies some wonder if a permanent decline for knowledge work has begun.