Fed Governor Barr warns of AI 'jobless boom' that could leave workers 'essentially unemployable'

Federal Reserve Governor Michael Barr outlined a scenario where AI agents replace professional and service jobs while robotics automate manufacturing, causing "layoffs to soar" and leaving a large share of the population "essentially unemployable." He urged policymakers not to underestimate the risks. Barr presented three scenarios ranging from utopian to apocalyptic, cautioning that current data shows gradual AI integration but warning the pace could accelerate. He called for rethinking workforce development and social safety nets before gains concentrate among a small elite.

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