THE GREAT DECOUPLING: A CRITICAL ANALYSIS OF ARTIFICIAL INTELLIGENCE AND GLOBAL LABOR MARKET RESTRUCTURING

Abstract

The current study aims to provide a systematic analysis of the restructuring of the world labor market in the face of artificial intelligence (AI) between 2024 and the first quarter of 2026. The current economic era is examined through the lens of "The Great Decoupling," in which AI has developed from a tool for the automation of tasks to an autonomous and agentic technology. The current study utilizes the latest available data from the International Labor Organization (ILO), the Organisation for Economic Co-operation and Development (OECD), and the latest available report from the White House Council of Economic Advisers for the year 2026. The current study aims to reveal the emergence of a "Second Great Divergence" in the face of AI development and deployment. The current study found that the world can expect a net job growth of 12 million jobs by the year 2030 despite the net loss of 85 million jobs in routine cognitive tasks. The current study aims to reveal a new inequality paradox in the face of AI development and deployment. The current study found that although AI development and deployment can lead to a reduction in wage inequality through the displacement of high-income cognitive workers, it can lead to a widening of wealth inequality by as much as 7.18 percentage points. The current study aims to reveal the world in a new era of skill-based hiring in which AI literacy can lead to a wage premium of as much as 56%. The current study aims to reveal the emergence of the EU AI Act as a new world standard for the regulation of algorithmic management.