For many workers, a job is more than just a source of income. It offers financial security, career growth, and the confidence to plan for the future. But as artificial intelligence (AI) changes how companies operate and hire, workers may find themselves competing for fewer opportunities or struggling to negotiate better pay, even when they continue to hold on to their jobs.
This concern was highlighted by European Central Bank (ECB) Chief Economist Philip Lane, who warned that AI could weaken workers’ bargaining power, putting pressure on wage growth and reducing labour’s share of income, as reported by Reuters.
While Lane’s warning centres on Europe, India’s job market raises similar questions. Hiring trends show that demand for AI-related skills is growing, but opportunities for freshers and other workers are expanding at a much slower pace.
This raises a larger question: as AI reshapes the workplace, will employees continue to have the leverage to ask for better salaries, promotions, and working conditions?
AI HIRING RISES, BUT OPPORTUNITIES REMAIN UNEVEN
India’s white-collar job market showed uneven growth in September 2026. AI and machine learning hiring rose 20% year-on-year, while overall white-collar hiring grew just 1%. Hiring among freshers with zero to three years of experience also increased by only 1%, while recruitment for professionals with four to seven years of experience declined 2%.
The figures suggest that recruitment is increasingly favouring specialised skills even as overall hiring remains subdued.
For employees, this could have implications beyond finding a job. When vacancies are limited in a particular field, workers may have fewer opportunities to switch employers for better pay or use competing offers to negotiate higher salaries.
However, hiring figures alone do not establish that AI is weakening workers’ bargaining power. They highlight a shift worth examining as employers reassess the skills and roles they need.
AI CREATES JOBS, BUT NOT NECESSARILY FOR EVERYONE
India’s experience also shows why the impact of AI cannot be reduced to a simple story of job losses. According to a Nomura report first accessed by Bloomberg News, found that India recorded 83,100 AI-related hires compared with 31,921 layoffs and attrition linked to AI.
The figures indicate that AI-related job creation can coexist with displacement. However, the new roles may demand different qualifications and experience from those required for jobs being affected by automation.
For instance, a worker whose customer-support role is automated may not automatically qualify for an AI engineering position. This mismatch could leave some employees struggling to move into emerging opportunities even as companies recruit for specialised roles.
A recent report on AI data-centre jobs has also highlighted demand for electricians, construction workers and other technical professionals supporting AI infrastructure.
The shift suggests that AI is changing demand across occupations, rather than affecting only software engineers or technology companies.
WILL AI CHANGE SALARY HIKES AND PROMOTIONS?
The impact on compensation could be another important part of the debate. As companies use AI to improve productivity, they may place greater emphasis on the results employees deliver, their ability to interpret AI-generated outputs and their judgement in applying the technology.
The question is whether productivity gains will translate into better compensation for workers or primarily benefit employers through lower costs and greater output.
A recent Workday’s Global Workforce Report found that 28% of surveyed business leaders expected AI to reduce headcount, while 40% believed it would help them get more out of their existing employees.
This points to another possibility: employees may retain their jobs but face higher productivity expectations, changing responsibilities or greater competition for promotions.
WHAT DOES THIS MEAN FOR WORKERS?
AI could ultimately create new opportunities, improve productivity and help businesses expand. But the benefits may not be distributed evenly across occupations, experience levels or skill groups.
For workers, the challenge is to understand how their roles are changing and develop skills that complement automation. For employers, the question is how productivity gains are shared through wages, career progression and opportunities to learn.
The ECB’s warning raises a broader issue for India’s evolving job market: the future of work will not be determined only by how many jobs AI creates or eliminates, but also by how much negotiating power employees retain in the process.
– Ends
Leave a Reply