'AI is definitely creating winners and losers' in job market: PIMCO economist

August 7, 2026 - 20:36

The rapid expansion of artificial intelligence is creating a clear divide in the American workforce, according to Tiffany Wilding, a managing director and economist at PIMCO. In a recent discussion with Yahoo Finance's Jared Blikre, Wilding noted that the AI boom is accelerating hiring in some sectors while pushing workers out in others. "AI is definitely creating winners and losers," she said, pointing to the sharp contrast between physical construction jobs and traditional office roles.

Wilding explained that the surge in AI-related data centers and infrastructure is fueling a strong demand for non-residential construction workers. That segment of the labor market is seeing steady gains as companies pour billions into new facilities. At the same time, white-collar positions, especially those involving routine tasks like data entry, basic analysis, and administrative support, are facing real displacement pressure. Firms are adopting AI tools to cut costs, which means fewer new hires and, in some cases, outright layoffs.

The economist cautioned that this shift is not temporary. She expects the trend to continue as businesses integrate AI deeper into their operations. While the construction boom offers a buffer for the overall employment picture, it does not fully offset the losses in office-based roles. Wilding also noted that the transition will require workers to adapt, with retraining and skill upgrades becoming more critical than ever. For policymakers, the challenge is to support those who are being left behind while still encouraging innovation. The bottom line, she said, is that the job market is being redrawn in real time, and the effects will be felt for years to come.