AI and the Composition of Labor Demand: Evidence from Online Job Postings

Georgi Demirev · interactive companion to the working paper

Where did the post-2022 contraction in labor demand fall? Since the release of ChatGPT (November 2022), online job postings for the occupations most exposed to AI have declined relative to the least exposed, and the gap has widened each quarter. This page lets you explore the estimates behind the paper across five measures of occupational AI exposure, two data sources (EU online job adverts and Australia's Internet Vacancy Index), and every occupation in the sample.

Working paper (PDF)

Headline result: exposure predicts the decline

The main specification regresses the change in log job postings (average of post-ChatGPT quarters over the four quarters preceding the release) on occupational AI exposure, with country fixed effects and standard errors clustered by country. Exposure is rescaled to 0–1, so the raw coefficient is the log-point gap between the most and least exposed occupations. The per-SD view multiplies it by the standard deviation of exposure in the estimation sample.

Estimated effect of AI exposure, by measure

Coefficient with 95% confidence interval. Hollow markers are not significant at the 5% level.

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Postings change vs exposure

Each gray point is a country×occupation pair (within-country deviations); larger dots are occupation averages. The line is the regression fit with its 95% band. Hover an occupation dot to identify it.

Event study: when did the gap open?

Coefficients on exposure×quarter interactions with occupation×country and time fixed effects (quarter 0 = 2022Q4, the ChatGPT release, is the omitted reference). The post-period decline grows each quarter. In the EU data the most exposed occupations were already on a rising trend before the release, a hiring run-up that the next section controls for. The Australian data reach back to 2016 and show no comparable pre-trend over the longer window.

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Alternative explanations

The post-ChatGPT window coincides with rising interest rates, the unwinding of pandemic-era remote work and a possible reversal of earlier hiring booms. Each specification adds occupation-level controls for these drivers to the long-difference model: interest rate sensitivity estimated from Reserve Bank of Australia policy surprises, the hiring run-up from 2019 into the pre-ChatGPT baseline, and the teleworkable share of Dingel and Neiman (2020). On the EU data the run-up and teleworkability attenuate some of the estimates, most for the Demirev and Anthropic measures, and all five remain significant with the three controls entered jointly. On the Australian data the controls leave the two replicating estimates unchanged or larger.

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Coefficient on each exposure measure with 95% confidence interval, one regression per cell, country (state) fixed effects, SEs clustered by country (state). Samples differ across rows because each control covers a subset of cells. Hollow markers are not significant at the 5% level.

Occupation explorer

Pick up to five occupations to compare their posting dynamics against the all-occupation average (postings indexed to 100 = average of the four quarters before the ChatGPT release) and see where each sits on all five AI-exposure measures.

Where the selected occupations sit on each exposure measure

Gray ticks show the full distribution of occupations; colored dots are your selection (0 = least exposed, 1 = most exposed in the sample).

Automation vs augmentation

Two of the exposure measures decompose into an automation component (AI performs the task) and an augmentation component (AI assists a human doing it). Entered jointly, the usage-based Anthropic measure attributes the contraction to automation on both datasets, while the product-based Demirev measure does not deliver a stable split.

Occupations by automation and augmentation exposure

Each dot is an occupation, colored by its post-ChatGPT change in postings. Hover to identify.

Joint regression estimates

Both components entered together in the delta specification, same fixed effects and clustering.

Biggest movers

The occupations with the largest relative changes in postings between the pre- and post-ChatGPT periods, colored by their AI-exposure percentile. Exposure concentrates among the biggest decliners, although some low-exposure occupations declined steeply too.

Who is hit: entry level and the most senior

Using EU vacancies broken down by required experience (EURES), the association between AI exposure and posting growth follows an inverted U: most negative for entry-level postings and for those requiring over ten years of experience.

Coefficients on exposure interacted with required-experience bins; country fixed effects, SEs clustered by country. Hollow markers are not significant at the 5% level.

Methods & data

Specifications

The long-difference (“delta”) model, estimated once per exposure measure:

Δ log ȳc,i = δ0 + ξc + δ·XAIi + εc,i

where ȳ is the average number of postings in the pre / post period for occupation i in country (or Australian state) c, ξc are country fixed effects, and XAI is exposure scaled to 0–1. The event study:

log yti,c = γt + αc,i + δt·XAIi×𝕀(t) + εti,c

with country×occupation and period fixed effects; 2022Q4 is the omitted reference period. The alternative explanations add occupation-level controls to the delta model:

Δ log ȳc,i = δ0 + ξc + δ·XAIi + Σj βj·Xjc,i + εc,i,   j ∈ {interest, remote, reversal}

Standard errors are clustered by country (and occupation in the event studies). Cells with fewer than 20 postings in either period are excluded.

Data