AI Jobs Crisis: Halpern Warns of Global Labour Shock

Independent economic forecasts suggest the world is on the brink of the most dramatic labour shock in modern history. The International Monetary Fund has cautioned about the rise of “structural unemployment,” McKinsey predicts automation could wipe out up to 30% of work hours by 2026, and Goldman Sachs estimates as many as 300 million jobs worldwide are at risk.

But author Louis Halpern believes even these stark warnings underestimate what’s coming. In his new book, You Are All Fired By an Algorithm: The Coalescence – A World Without Jobs, Halpern argues that artificial intelligence (AI) is accelerating workplace disruption faster and more broadly than governments or corporations are prepared to handle.

Robots at Work — and People Out of It

Halpern highlights real-world examples already unfolding. At Amazon’s Spartanburg site, 350 robots replaced 3,000 workers in just 18 months. Klarna’s customer service chatbot displaced the equivalent of 700 human agents within a single month, saving the company £40 million a year. At JPMorgan Chase, AI now performs 360,000 hours of legal and loan work once handled by staff.

“This is the first time human labour has faced simultaneous disruption across every sector,” Halpern told readers. “This is not another industrial revolution — this could be the collapse of work itself.”

The “Coalescence Effect”

Halpern calls the phenomenon the coalescence — a term describing the simultaneous wave of job displacement across industries. Unlike previous technological shifts that hit one sector at a time, AI is reshaping finance, healthcare, retail, logistics, and manufacturing all at once.

The danger, he argues, lies in the compounding effect: jobs vanish, disposable income falls, businesses struggle, and unemployment escalates further in a downward spiral.

Safety Nets Not Built for This

Traditional welfare systems may not cope. During the COVID-19 pandemic, the UK’s Universal Credit system nearly buckled under the strain of 2.2 million claims in a single month. AI-driven disruption, Halpern notes, could bring job losses on a similar scale — but with no return to normality once the crisis passes.

A Narrow Window for Solutions

Despite the dire warnings, Halpern insists solutions are available. His book proposes a seven-pillar strategy, including Universal Basic Income, new forms of AI-driven taxation, and emergency relief funding. He argues the immense wealth created by artificial intelligence could finance a transition — but only if governments act swiftly.

“We stand at a crossroads,” Halpern concludes. “Either channel AI’s profits into supporting society, or face collapse. The same technology that threatens our jobs could also deliver prosperity beyond anything humanity has ever known — if we choose to use it wisely.”

Find out more about the book here: https://halpern.co/book