Traders share Pope Leo’s worries on AI’s job market impact

Source Domain: www.cnbc.com

Pope Leo XIV’s first encyclical urges global regulation of artificial intelligence (AI) to mitigate its negative impacts on the labor market.
The pope expresses concern over the potential “social calamity” of mass unemployment that could arise from increased adoption of AI technologies.
Traders on prediction market Kalshi place a 60% probability on U.S. unemployment crossing 8% before 2030 due to technological displacement, with 47% chance of unemployment surpassing 9%.
Kalshi traders assign a 78% probability that AI is presently the main reason for job cuts in May 2025, an effect observable in data from Challenger, Gray & Christmas.
Despite acknowledging temporary labor displacements from new technology, Pope Leo XIV argues that work is essential for human experience and community contribution, warning against societal risks if employment is guaranteed to only a small fraction of the population.

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