Scandinavian Working Papers in Economics

Ratio Working Papers,
The Ratio Institute

No 380: Artificial Intelligence, Hiring and Employment: Job Postings Evidence from Sweden

Erik Engberg (), Mark Hellsten (), Farrukh Javed, Magnus Lodefalk (), Radka Sabolová, Sara Schroeder and Aili Tang
Additional contact information
Erik Engberg: The Ratio Institute, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden
Mark Hellsten: The Ratio Institute, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden
Farrukh Javed: The Ratio Institute, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden
Magnus Lodefalk: The Ratio Institute, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden
Radka Sabolová: The Ratio Institute, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden
Sara Schroeder: The Ratio Institute, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden
Aili Tang: The Ratio Institute, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden

Abstract: This paper investigates the impact of artificial intelligence (AI) on hiring and employment, using the universe of job postings published by the Swedish Public Employment Service from 2014-2022 and universal register data for Sweden. We construct a detailed measure of AI exposure according to occupational content and find that establishments exposed to AI are more likely to hire AI workers. Survey data further indicate that AI exposure aligns with greater use of AI services. Importantly, rather than displacing non-AI workers, AI exposure is positively associated with increased hiring for both AI and non-AI roles. In the absence of substantial productivity gains that might account for this increase, we interpret the positive link between AI exposure and non-AI hiring as evidence that establishments are using AI to augment existing roles and expand task capabilities, rather than to replace non-AI workers.

Keywords: Artificial Intelligence; Technological Change; Automation; Labour Demand

JEL-codes: D22; J23; J24; O33

Language: English

23 pages, November 8, 2024

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