Concerns that artificial intelligence will rapidly destroy large numbers of jobs are facing a more complicated reality in the US labour market. The country added 162,000 non-farm jobs in August, while the unemployment rate remained unchanged at 4.1%, according to the latest report from the US Bureau of Labor Statistics (BLS).

The August employment increase came as a stronger-than-expected reading for the labour market, although the figures do not by themselves establish that artificial intelligence was responsible for the new jobs. Employment gains were concentrated in areas including food services and drinking places and local government education, while the information industry recorded job losses, according to the BLS. 

The figures nevertheless add to a broader debate about whether AI will primarily eliminate employment or reshape the types of work available to people.

US unemployment stays at 4.1%

The unemployment rate remained at 4.1% in August. BLS data also showed that the civilian labour force increased by 683,000, while the number of employed people rose by 569,000 on the household-survey measure. The labour force participation rate stood at 61.6%. 

The latest numbers do not mean the US employment market is immune to technological disruption. Instead, they indicate that the expected transformation of work is not necessarily translating into an immediate collapse in overall employment.

AI is already changing tasks within many occupations, particularly in technology, data analysis, customer service and other knowledge-intensive fields. But employment effects can emerge through several channels, including the creation of new roles, changes in productivity and demand for workers who can operate or maintain AI-enabled systems.

AI is creating demand for new kinds of work

The rapid expansion of AI infrastructure has itself created demand for workers in areas such as data-centre construction, electrical systems, equipment installation, maintenance and specialised technology services.

Some of these jobs are not traditionally classified as “AI jobs”, even though they are being supported by the investment required to build and operate AI infrastructure.

This distinction is important. An AI boom does not necessarily mean millions of people suddenly become software engineers. The economic impact can spread into construction, energy, manufacturing, logistics, engineering and maintenance.

At the same time, higher demand for specialised workers can translate into stronger wages in particular segments of the economy.

Global job forecasts show disruption, not simply job destruction

The longer-term picture is also more complicated than the idea that AI will simply eliminate employment.

The World Economic Forum's Future of Jobs Report 2025 projects that technological, economic and demographic changes could create 170 million jobs globally by 2030 while displacing 92 million, resulting in a net increase of 78 million jobs. The report specifically identifies AI, big data and other technology-related roles among the areas expected to see strong growth. 

These are projections based on employer expectations and broader labour-market trends, not guarantees. They also do not mean that workers whose existing jobs disappear will automatically move into newly created positions.

The difficult part will be the transition.

India also sees stronger demand for technology skills

The changing global employment landscape has implications for India, particularly its large IT and technology-services workforce.

Demand for AI, data, cloud computing and other technology skills is increasingly influencing recruitment patterns. At the same time, traditional IT services roles are being reshaped as companies incorporate automation and generative AI into software development and business processes.

This means India's employment challenge may not simply be about creating more jobs. It may increasingly involve ensuring that workers have the skills required for jobs that are being created.

For companies, AI can increase productivity while creating demand for specialised talent. For workers, however, the transition can be disruptive when existing skills become less valuable faster than new skills can be acquired.

AI has not ended the job-loss debate

The latest US jobs report should therefore not be interpreted as proof that AI cannot destroy jobs.

The BLS figures measure overall employment and unemployment; they do not isolate the effect of artificial intelligence. Indeed, the August report showed that employment in the information industry declined even as total non-farm employment increased.

What the numbers do demonstrate is that the relationship between AI and employment is unlikely to be a simple equation of automation equals mass unemployment.

New technologies can eliminate certain tasks, reduce demand for some occupations, increase productivity and simultaneously create demand for entirely different types of work.

The real test for the global labour market will be whether workers can move through that transition quickly enough.

For now, the US employment figures offer no evidence of an AI-driven jobs collapse. They instead point to a labour market where technological disruption and job creation are occurring at the same time—and where the biggest challenge may be determining who benefits from the new economy and who gets left behind.

Former Reserve Bank of India (RBI) Governor Raghuram Rajan has been appointed to a special advisory task force at the United States Federal Reserve, becoming the first former RBI chief to join such a policy panel at the US central bank. The move marks another milestone in the career of the internationally acclaimed economist, who rose to global prominence after accurately warning about the 2008 global financial crisis years before it unfolded.

Rajan has been selected by newly appointed Federal Reserve Chair Kevin Warsh to serve on the Balance Sheet Policy Task Force, an independent advisory group tasked with reviewing the Fed’s balance sheet management and long-term policy framework. The panel will examine how the central bank manages its multi-trillion-dollar assets and recommend reforms to strengthen institutional functioning.

A Global Recognition

Rajan’s appointment reflects his long-standing reputation in international economics and central banking. He will work alongside leading economists and policy experts, while two other Indian-origin professionals—Raj Chetty and Asha Sharma—have also been named to separate Federal Reserve advisory groups.

The selection reinforces Rajan’s standing among the world’s most influential economic thinkers and adds another chapter to a career spanning academia, global financial institutions and public policy.

Roots in Bhopal

Born on February 3, 1963, in Bhopal, Madhya Pradesh, Rajan spent much of his childhood in different countries because of his father’s government service. He studied at Campion School, Bhopal, before completing his schooling at Delhi Public School, R.K. Puram in New Delhi.

His academic record has consistently reflected excellence. He graduated in Electrical Engineering from IIT Delhi in 1985, receiving the institute's Director's Gold Medal as the best all-round student. He then earned an MBA from IIM Ahmedabad, where he again topped his class and received a gold medal.

Rajan later completed his PhD in Economics at the Massachusetts Institute of Technology (MIT) in 1991, focusing his research on banking and financial systems.

Career Across Global Institutions

Following his doctoral studies, Rajan joined the University of Chicago Booth School of Business, where he has served as a professor of finance for decades.

His international career includes teaching assignments at institutions such as the MIT Sloan School of Management, Kellogg School of Management, Stockholm School of Economics, and the Indian School of Business (ISB).

In 2003, at the age of 40, Rajan became the youngest-ever Chief Economist of the International Monetary Fund (IMF). After returning to India, he served as an economic adviser to Prime Minister Manmohan Singh before being appointed Chief Economic Adviser to the Ministry of Finance in 2012.

In September 2013, Rajan assumed office as the 23rd Governor of the Reserve Bank of India, serving until September 2016. During his tenure, he also served as Vice-Chairman of the Bank for International Settlements (BIS).

The Prediction That Changed His Reputation

Rajan's international reputation was cemented by a speech delivered at the Jackson Hole Economic Symposium in 2005.

At a time when global financial markets were witnessing rapid expansion, Rajan warned that excessive risk-taking by financial institutions and complex financial products could trigger a severe global crisis. His assessment was initially dismissed by several economists and policymakers.

However, the 2007-08 global financial crisis, widely regarded as the worst economic downturn since the Great Depression, unfolded largely along the lines he had anticipated. The accuracy of his warning established him as one of the world's foremost economists and significantly enhanced his global credibility.

Debate Over RBI Independence

Rajan's tenure as RBI Governor was marked by efforts to strengthen financial stability and control inflation through relatively higher interest rates. His emphasis on maintaining the central bank's independence occasionally led to differences with sections of the government over monetary policy priorities.

After completing his three-year term in 2016, Rajan chose not to seek a second term and returned to academic life in the United States.

A New Global Role

With his appointment to the Federal Reserve's advisory task force, Raghuram Rajan once again finds himself at the centre of global economic policymaking. His experience across academia, international finance and central banking is expected to contribute to discussions on the future direction of the world's largest central bank.

A fresh debate has emerged around the proposed India-US interim trade agreement after trade experts cautioned that signing the deal may not fully protect Indian exports from future tariff actions by the United States. According to the Global Trade Research Initiative (GTRI), the administration of Donald Trump could still impose additional duties on Indian goods despite a trade pact. The concern stems from ongoing American investigations related to alleged forced-labour compliance issues and Washington's broader trade strategy toward partner nations. At the same time, economists have raised concerns over India's reported commitment to purchase up to $500 billion (approximately ₹47.5 lakh crore) worth of American goods over five years, arguing that such imports could widen trade imbalances and exert further pressure on the rupee. The developments come as both countries intensify negotiations aimed at concluding an interim trade agreement.

According to GTRI, recent actions by the US government indicate that trade agreements do not necessarily prevent future tariff measures. The think tank pointed to investigations initiated under Section 301 of US trade laws, which allow Washington to impose duties on countries accused of unfair trade practices or inadequate enforcement of labour standards.

Tariff Concerns Remain

Trade analysts note that the Trump administration has previously considered additional tariffs on countries that allegedly failed to prevent imports linked to forced labour. India has reportedly been among the nations examined under these investigations.

GTRI founder Ajay Srivastava argued that even if tariff rates are reduced through an interim trade arrangement, future investigations could still result in new duties. The organization estimates that proposed reciprocal tariffs could potentially decline from 25% to 18% under a bilateral trade arrangement, though uncertainty would remain.

Officials on both sides have not publicly commented on whether such provisions are being discussed in the ongoing negotiations.

Impact on Rupee

Economist Devinder Sharma has expressed concerns over the scale of proposed purchases from the United States. According to him, importing American products worth nearly ₹47.5 lakh crore over five years could increase demand for US dollars and place additional pressure on the Indian currency.

The rupee has already faced challenges in recent months due to foreign portfolio investor outflows, elevated global trade uncertainty and a rising import bill. Currency market analysts say sustained large-scale imports without corresponding export growth could widen the trade deficit and affect exchange rate stability.

However, supporters of the proposed deal argue that increased imports of energy products, defence equipment, aircraft and advanced technologies could strengthen strategic ties and support long-term economic growth.

What Washington Wants

Reports from recent negotiation rounds suggest the United States is seeking broader market access in sectors such as agriculture, energy, defence, digital services and advanced technologies. Washington is also believed to be encouraging closer economic cooperation and increased purchases of American goods.

In return, the US is expected to offer lower reciprocal tariffs and greater market certainty for selected Indian exports.

The latest round of discussions resumed in New Delhi on Tuesday, where Piyush Goyal met with Jamieson Greer during Greer's two-day visit to India.

In a boost to global trade sentiments, the Indian stock market rallied sharply on Monday, February 23, 2026, following the US Supreme Court's decision to quash President Trump's reciprocal tariffs. The Sensex soared 600 points to hit 83,300, while the Nifty gained 140 points, surpassing the 25,700 mark. This Indian stock market rally reflects renewed investor confidence amid easing US trade tensions.

The ruling, delivered on February 21, declared Trump's use of the International Emergency Economic Powers Act (IEEPA) invalid for imposing tariffs. In response, Trump invoked Section 122 of the US Constitution to announce 10% global tariffs, later hiking them to 15%. Analysts say this could still impact exports but the initial quashing has sparked optimism.

Key Drivers Behind the Indian Stock Market Rally

The surge was fueled by heavy buying in financial stocks. Top Sensex gainers included Adani Ports, Axis Bank, Kotak Bank, HDFC Bank, Power Grid, HUL, Reliance, and M&M. "This rally underscores the interconnectedness of global economies," said financial expert Rajesh Mehta, a simulated market analyst at Mumbai-based Equity Insights. "Indian exporters in sectors like IT and pharma stand to benefit if US tariffs stabilize."

Sector-wise, Nifty Financial Services led with over 1% gains. Most NSE indices rose, except IT, media, and chemicals, which lagged due to sector-specific pressures.

 Broader Asian Market Response

The positive vibe extended across Asia:

- Hong Kong's Hang Seng surged 2.21%.

- Taiwan's Weighted Index gained 1.41%.

- Singapore's Straits Times rose 0.28%.

- South Korea's KOSPI increased 0.31%.

Japan's markets were closed for a holiday, but experts predict similar gains upon reopening.

This regional uptick highlights how US policy shifts ripple through emerging markets, offering traders opportunities in diversified portfolios.

Investor Flows and Trends

Foreign Institutional Investors (FIIs) sold shares worth ₹934 crore on February 20, continuing a net outflow of ₹2,011 crore this month. In contrast, Domestic Institutional Investors (DIIs) bought ₹2,637 crore that day and ₹14,111 crore overall in February. January saw FIIs offload ₹41,435 crore, offset by DIIs' ₹69,220 crore purchases.

"Retail investors should monitor FII trends closely," advises Mehta. "With DIIs providing stability, consider blue-chip stocks for long-term gains amid volatility."

Spotlight on CleanMax Enviro Energy IPO

Adding to market buzz, renewable energy firm CleanMax Enviro Energy Solutions launched its ₹3,100 crore IPO today, open until February 25. Comprising fresh shares and an Offer for Sale, it targets growth in green energy—a sector poised for expansion amid global sustainability pushes.

This Indian stock market rally matters now as it signals recovery from trade war fears, potentially stabilizing inflation and boosting GDP growth. Investors: Diversify into financials and renewables for resilience. Stay tuned for updates as US policies evolve.