The ChatGPT revolution opens the door to a four-day week by providing a major productivity boost for swathes of jobs, according to a Nobel Prize-wining labor economist.
“I’m very optimistic that we could increase productivity,” he said in an interview at a conference in Glasgow. “We could increase our well-being generally from work and we could take off more leisure. We could move to a four-day week easily.”
Pissarides has previously investigated the impact of automation on jobs through the Pissarides Review into the Future of Work and Wellbeing. He won a Nobel Prize in economics for his work on labor market frictions.
“They could take away lots of boring things that we do at work … and then leave only the interesting stuff to human beings,” he said. The transition for workers will be made less painful by slower adoption by companies despite the technology “moving fast,” he added.
“There’s just no limit to how much work humanity could generate if they really want to work,” Pissarides said. “It will take long to have a real impact and during that time people will adjust. What you need in this adjustment is basically upskilling.”
Advanced economies have suffered a shifting down in productivity gains since the financial crisis, slowing GDP growth markedly.
“The combination of significant labor cost savings, new job creation, and higher productivity for non-displaced workers raises the possibility of a productivity boom that raises economic growth substantially,” Goldman’s economists said in a report last month. “We estimate that AI could eventually increase annual global GDP by 7%.”
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