American Dream Turning into American Nightmare: The Unaddressed White-Collar Workers’ Labor Crisis in the Era of AI
Once a land of opportunities for many, including myself, America promised that with hard work, ambition, and perseverance, one could achieve the cherished “American Dream.” For over a decade, I lived by this ethos, building a career as a data analyst, eventually rising to a role of Director of Business Intelligence, making a six-figure salary and managing data projects for clients across various industries. But the dream began to unravel in November 2023, when I was laid off.
Timing couldn’t have been worse. Losing a job is never easy, but historically, tech professionals like myself have found it relatively quick to bounce back within a few weeks or a couple of months, thanks to the ever-expanding demand for our skills. However, this time was different. Just as I was entering the job market, a seismic shift was occurring—one driven by the meteoric rise of artificial intelligence (AI).
The AI Boom and Its Impact
The rise of AI technologies during 2024 marked a turning point in the hiring landscape. Companies began to streamline their operations, leveraging AI to cut costs and optimize workflows. The result? Mass layoffs across sectors, especially in tech, leading to a saturated job market. Suddenly, the once-thriving industry I had spent my career building seemed to turn its back on me—and thousands like me.
As companies faced a deluge of applicants for every open position, they turned to automation to sift through the noise. Applicant Tracking Systems (ATS) and other AI-driven tools became the gatekeepers of opportunity, designed to find the “perfect” candidate. But these systems were far from perfect.
Automation and the Broken Hiring Process
Submitting a resume became an art form. Job seekers scrambled to craft resumes and cover letters filled with keywords from job descriptions, hoping to match the automated systems’ algorithms. But even with this effort, applicants like myself found ourselves stuck in a cycle of automatic rejection.
The flaws of these systems were glaring. Formatting issues could disqualify an otherwise qualified candidate. Even worse, studies suggest that up to 75% of resumes submitted never reach human eyes. For many, this meant that their skills, experience, and hard work were rendered invisible by the very technology they hoped would make the process more efficient.
The Fallout for White-Collar Workers
After submitting hundreds of applications, I experienced a level of frustration and despair I had never felt before. Roles requiring half my experience rejected me automatically. Companies inundated with applicants leaned heavily on automation to ease their workload, but the result was a hiring process that left skilled workers like me out in the cold.
As weeks turned into months, I realized that the displacement of white-collar workers was not just a personal crisis but a societal one. Educated, experienced professionals found themselves struggling to survive, resorting to applying for minimum wage jobs—jobs they were overqualified for but couldn’t secure because employers feared they would leave as soon as a better opportunity arose.
From Corporate Boardrooms to Retail Counters
My story is not unique. I’ve read accounts of workers who once managed multi-million-dollar contracts being turned away from roles at grocery stores and retail chains like Total Wine. The signs outside these businesses—“Now Hiring”—felt like a cruel joke. For many displaced professionals, these jobs were not accessible, leaving them in limbo.
I consider myself fortunate to have eventually landed a position at a liquor store as a cashier and restocking part-time seasonal worker, after pleading for a chance. But the reality remains: the hiring landscape, especially in tech, has fundamentally changed. It’s a grim new chapter for America’s skilled workforce, one where AI-driven automation and market saturation have turned the American Dream into an American Nightmare!
Living Through an Economic Transformation
In my latest podcast episode, my therapist pointed out something that deeply resonated with me: what I am experiencing firsthand is the transformation of our economy unfolding right under my nose and there is little I can do about it but adapt as best as I can and ride the storm. It’s a stark and rapid shift, one that brings with it an entirely new set of challenges in a labor market evolving at a pace that few can truly grasp.
For those who still have jobs, it’s hard to comprehend just how much the landscape has changed over the past year. The stability they enjoy feels worlds apart from the harsh reality faced by those of us trying to reenter the workforce. The speed and scale at which AI is reshaping industries are unprecedented, leaving displaced workers struggling to adapt while others remain unaware of just how drastically things have shifted. I personally remember applying to thirty, maybe fifty, jobs on LinkedIn just two years ago when I was switching companies. I was able to secure multiple rounds of interviews at different organizations and eventually landed a new job within weeks. In today’s world, after submitting hundreds of resumes to roles I qualify for, the rejection of my applications by bots has become the new normal, and I haven’t been able to speak with a single hiring manager in over a year. A recent article from Fortune stated that 40% of unemployed job seekers report that they haven’t had a single job interview this year and a striking 72% of U.S. adults say that “applying for jobs feels like sending a resume into a black box.”
A Bleak Forecast
Adding to this challenge, the International Monetary Fund (IMF) has warned back in January 2024 that approximately 60% of jobs in advanced economies are at risk due to AI and automation and will worsen inequality. This projection underscores the profound impact these technologies are expected to have on the labor market.
Compounding this issue is the current political landscape. Under a second term of President Donald Trump, there is a strong emphasis on deregulation. This approach makes the passage of legislation like the Artificial Intelligence Accountability Act of 2024 increasingly unlikely. A long-time friend working in politics in Washington DC informed me recently that, given the administration's priorities, this act—which aims to establish reskilling and upskilling programs subsidized by the government to help displaced workers transition the evolving labor market—is unlikely to advance.
Kevin: Hi, haven't talked to you in a while. How are you?
Friend working in politics in Washington DC: I'm well, thanks
Kevin: Glad to hear. Are the elections outcome doing anything as far as your work in DC?
Friend: As appointee, I'll be out of a job on January 20. Figuring out next steps.
Kevin: That's unfortunate. Sorry to hear that.
What's your take on the Artificial Accountability Act of 2024 we talked about earlier this year that's still in the introduction stage in Congress. Likely not to move forward under a Trump 2nd term right? It's the only thing out there that exists that's supposed to provide upskilling and reskilling subsidized programs to help the workforce transition careers in our fast-evolving workforce. I'm living the trend I predicted earlier this year where white-collar experienced displaced workers are having a hard time even getting minimum wage jobs due to being overqualified, combined with an increased issue of automated systems that block applicants from getting through the hiring process to even be able to interview for jobs that they qualify for. It's getting really bad. Also, saw a trend in recent months of AI-powered paid apps promising to help you find a job wanting to benefit from desperate workers looking for a job. Not sure how AI agents will impact workers especially in tech during 2025 but it’s not looking good.
Friend: GOP and Trump will not put any regulations and will kill legislation.
Kevin: That's what I thought. So the labor crisis is likely going to continue and worsen due to unregulated AI. Sad that the United States has not been able to be proactive like other countries, especially in Europe, in mitigating the displacement of workers during this transition period of rapid technological advancement.
Kevin: God Bless America!
As AI capabilities continue to grow, such as AI agents, companies are expected to further streamline operations using these technologies. This trend suggests that AI will play a significant role in reshaping the labor market in 2025 and beyond, potentially leading to more job displacement.
The Exploitation of Desperation
Adding insult to injury, the explosion of AI-powered paid apps promising to help displaced workers find their next job has become an unsettling trend. These apps, which claim to optimize resumes, craft “perfect” cover letters, or match job seekers with opportunities, are profiting off the desperation of individuals scrambling to regain stability.
The emergence of this industry underscores a glaring issue: if there is such a massive market for AI-driven job search and matching services, it’s clear the hiring system is fundamentally broken. These apps exploit the very inefficiencies created by automated hiring processes, offering a glimmer of hope to those left behind by the technology that displaced them in the first place.
The Crushing Reality
With the rising cost of living, soaring food prices, and an increasingly precarious job market, survival is becoming a daily struggle—especially for single individuals like myself. What was once a land of opportunity now feels like an unrelenting uphill battle.
The unregulated growth of AI in the United States has only exacerbated the problem, saturating the job market further as more companies fire employees and replace them with AI-driven systems. This cycle of displacement is not just stripping individuals of their livelihoods; it is eroding the very foundation of what many believed was possible in this country.
My own experience is a testament to this harsh new reality. Once climbing the corporate ladder and living the so-called American Dream, I now find myself fighting just to survive. With no stable job and no clear path forward, I am teetering on the verge of homelessness—a stark contrast to the opportunities I once thought were endless.
This isn’t just my story; it’s the story of countless others left behind in the wake of unchecked technological advancement. If we don’t act now to regulate AI and address the human impact of these changes, the American Dream will continue to transform into a true Nightmare for millions more struggling to survive in an AI-driven labor market.
The time to rethink our priorities is now—before the promise of opportunity is lost forever.
