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Is AI the Antidote to Labor Challenges?

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(Solutions Review) Forecasting economic futures has always been risky, but businesses live and die by such foresight. Today’s labor market is a good example. One economist called the current landscape “a tale of two job markets.” In these conditions, it’s tough for leaders to make informed decisions about hiring and human resources. For example, September was filled with mixed messages, as a job report showed that U.S. employers hired more workers than expected while the unemployment rate dropped to 3.5 percent. And yet, despite these numbers’ positive sheen, they indicate an overall gradual slowing of a job market that’s been burning bright for the last two years.

Industries that were hit hard by the pandemic, including food services and hospitality, are seeing a surge in employment. But sectors sensitive to interest rates—i.e., finance and automotive dealerships—are experiencing employment declines. Such a paradoxical climate can leave companies facing complex staffing and scheduling issues, often leading to skyrocketing onboarding and operating costs.

 

 

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