Skip to content
Photonews Logo Photonews logo
  • Home
  • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Azad Jammu Kashmir
    • Balochistan
    • Gilgit – Baltistan
  • World
  • Business
  • Entertainment
  • Videos
    AI researcher Nate Soares discussing artificial intelligence risks and preventing an AI apocalypse.
    OffbeatVideos

    Nate Soares Says AI Fears Led Him to Stop Retirement Saving

    October 30, 2026 2 Min Read
    Thick smoke rises above buildings in Sana’a, Yemen, following reported airstrikes.
    Top NewsVideos

    Saudi Strikes in Yemen Kill 11 in Sanaa, Sources Say

    October 25, 2026 2 Min Read
    Armed Houthi fighters raise a rifle and fists beside a mounted weapon in Yemen.
    Videos

    Yemen Strikes Kill Three Children, Houthi Agency Says

    October 17, 2026 1 Min Read
  • Sports
  • Technology
  • Offbeat
  • Blog
  • Contact
Reading: Workweek Impact Limited by Consumption and Baumol Effect
PhotoNews PakistanPhotoNews Pakistan
Font ResizerAa
Search
  • Home
  • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Balochistan
    • Azad Jammu Kashmir
    • Gilgit – Baltistan
  • World
  • Business
  • Entertainment
  • Videos
  • Sports
  • Technology
  • Offbeat
  • Blog
  • Contact
Have an existing account? Sign In
Follow US
© 2022 Photonews. All Rights Reserved.
Wooden blocks spell “4-Day Work Week” beside a digital AI dashboard with charts, cloud icons and automation symbols.
PhotoNews Pakistan > Tech > Workweek Impact Limited by Consumption and Baumol Effect
Tech

Workweek Impact Limited by Consumption and Baumol Effect

Web Desk
By Web Desk Published May 17, 2026 2 Min Read
Share
AI and four-day workweek concept graphic. Image Credit: @AIWatch0211 / YouTube
SHARE

AI productivity gains will not automatically shorten the workweek, according to a Financial Times analysis by Adam Shaw. Higher consumption and rising costs in human-intensive sectors could offset potential leisure time.

OpenAI CEO Sam Altman has suggested a four-day work week; JPMorgan Chase CEO Jamie Dimon, three and a half; and Microsoft co-founder Bill Gates, as low as two. However, the analysis notes that these predictions ignore macroeconomic feedback.

Workers benefiting from AI may choose more leisure or higher consumption, but widespread adoption can increase aggregate demand.

This pushes up prices and erodes real wages, forcing some workers to work longer hours to preserve their living standards.

The US job market needs help:

Since December 2023, the healthcare and social assistance sector has added +1.76 million jobs.

Over the same period, all other private sector industries have collectively lost -127,800 jobs.

Private sector employment, excluding healthcare, has… pic.twitter.com/eOG310lds6

— The Kobeissi Letter (@KobeissiLetter) May 15, 2026

AI boosts supply in automated sectors like software, graphic design, and apparel, lowering prices.

In contrast, human-intensive sectors—childcare, construction, sanitation—experience minimal immediate productivity gains, raising the cost of essential services.

The “Baumol effect,” named for economist William Baumol, occurs when low-productivity sectors must raise wages to compete with high-productivity AI-augmented roles.

🇺🇸 Jamie Dimon, CEO of JPMorgan Chase, said it out loud:

Your kids will work 3.5 days a week. Live to 100. AI is going to cure cancer, stop car crashes, make new materials, save lives.

"Life will be better."

He's not a tech bro dreaming out loud. This man runs the money.… pic.twitter.com/mQUm16nkZx

— Mario Nawfal (@MarioNawfal) May 16, 2026

Historical U.S. data show automation reduced apparel costs but drove up healthcare and housing prices, mirroring today’s projected disparities.

Read: Meta Employee Surveillance Software Tracks Keystrokes to Train AI

Even if AI raises wages, the combined effects of higher consumption and cost pressures could keep or increase working hours, rather than delivering the shorter weeks tech leaders predicted.

The analysis emphasises that AI’s leisure benefits depend on structural economic changes, sector-specific productivity growth, and potential regulatory interventions, rather than technology alone.

TAGGED:AI RevolutionFeaturedOpenAI
Share This Article
Facebook Twitter Pinterest Whatsapp Whatsapp LinkedIn Email Copy Link Print
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Advertisement

Bank Alfalah Pehchan account

Recent Posts

Wander Franco of the Tampa Bay Rays holding a baseball and preparing to throw during a 2023 game.

Wander Franco Gets Suspended Sentence as Pardon Is Revoked

CDA Housing Scandal

CDA Notice Gives Fazlur Rehman’s Home 15 Days to Comply

US President Donald Trump and Iran’s Supreme Leader Mojtaba Khamenei.

Iran Peace Talks Divide Leaders as Qatar Returns to Tehran

Post Archives

More Popular from Photonews

1Password logo featuring a dark blue keyhole symbol inside a circle and the company name in bold blue lettering.
Tech

1Password for Agents Lets AI Log In Without Seeing Passwords

2 Min Read
Utah Jazz guard Keyonte George celebrates in his white No. 3 jersey after a 120–119 win over the New Orleans Pelicans.
Sports

Utah Jazz Beat Pelicans 120-119 for First Season Win

2 Min Read
Unidentified bright object spotted in the sky by pilots flying over Ohio.
Offbeat

Ohio UFO Sighting Prompts Two Pilots to Seek Radar Check

2 Min Read
Top NewsWorld

Saudi Arabia Says It Intercepted 12 Houthi Missiles, 2 Drones

RIYADH: The Saudi-led coalition said it intercepted 12 Houthi missiles and two drones over Riyadh and…

October 25, 2026
Punjab

Fateh Jang Shooting Kills Couple Inside Khurd Road Home

FATEH JANG: Unidentified assailants killed a 42-year-old man and his 35-year-old wife inside their Khurd Road…

October 25, 2026
Tech

China Spaceplane Photo Reveals Open Bay in US Report

The US Defence Intelligence Agency (DIA) released a photograph of China’s reusable spaceplane on Monday, showing…

October 29, 2026
Tech

AI Leaders in Washington Face Criticism Over Risk Rhetoric

WASHINGTON: Lawmakers and White House advisers say prominent AI leaders are becoming a political liability as…

October 24, 2026
PhotoNews Pakistan

Always Stay Up to Date

Subscribe to our newsletter to get our newest articles instantly!

    Categories

    • World
    • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Balochistan
    • Azad Jammu Kashmir

     

    • Top News
    • Business
    • Entertainment
    • Sports
    • Videos
    • Tech
    • Offbeat
    • Blog
    • About Us
    • Privacy Policy
    • Code of Ethics & Editorial Standards

    © 2026 Phototnews
    All Rights Reserved.

    Welcome Back!

    Sign in to your account

    Lost your password?