Prologue | Technology Is Creating Wealth—and Anxiety
(Asia Financial Observation – Report by Yuanyin, December 22, Tokyo)Judging by the data, technology appears to be steering the world toward a more prosperous future: rapid iterations of AI models, breakthroughs in semiconductor capacity, and technology stocks repeatedly hitting new highs. Yet beneath this glossy narrative, a pervasive sense of uncertainty is taking hold.
The faster technology advances, the more widespread anxiety becomes. This apparent paradox is now a shared global sentiment. At its core lies a simple reality: the pace of technological progress has far outstripped the speed at which social institutions, individual skills, and career security can adjust.
Tech Stocks Rise, but Jobs Become More Fragile
The value created by technology is first captured by shareholders and corporate owners—not by workers. When technological efficiency improves, companies’ immediate response is rarely to expand their workforce, but rather to eliminate redundancies. One striking phenomenon is that the value created by technology shows up first in capital markets, not in employment stability.
A Small Story | The Contrast Between “Silicon Valley” and “Happy Valley”
As of September 2025, the “Magnificent Seven” technology giants accounted for nearly 35% of the S&P 500’s total weight. Their combined profits are projected to grow by more than 15% in 2026, with revenue growth expected to reach 13%. Yet by November 7, the wave of layoffs associated with these companies had already affected more than 100,000 workers.
Behind these cold numbers lies a stark contrast: employees offering each other consolation on internal company forums, while management celebrates what it calls “efficient organizational restructuring.”
In essence, soaring stock prices and rising unemployment are unfolding simultaneously. Technology makes companies stronger, but workers more vulnerable. Technological efficiency has significantly reduced corporate dependence on human labor.
Under the AI Investment Boom, Entry-Level Jobs Are the First to Be Squeezed
Technological substitution of labor has initially been concentrated in repetitive blue-collar roles, such as manufacturing and logistics.
A Small Story | “An AI That Can Write Reports Is Cheaper Than a New Hire”
Data from the UK recruitment platform Adzuna (June 2025) shows that the number of entry-level positions in the UK has fallen by 31.9% compared with 2022. In many industries, junior roles have been effectively “cut in half.” Retail entry-level jobs have been hit hardest by artificial intelligence, with hiring volumes down by 78.2%.
British Telecommunications Group (BT Group plc) stated in May 2023 that it plans to replace 10,000 jobs with AI by 2030.
Meanwhile, white-collar jobs—especially middle-tier positions—have not been spared.
After introducing generative AI, a UK accounting firm found that an audit report that once required three junior analysts working for two days could now be produced by AI and reviewed by a single manager in just 20 minutes. As a result, the firm froze all junior-level hiring for that year.
At least for now, the primary impact of technological disruption is not felt by senior decision-makers, but by the large number of mid- and entry-level employees responsible for execution. Their roles are being compressed at a pace visible to the naked eye.
Concentrated Tech Dividends, Lagging Distribution Mechanisms
Technology has created unprecedented wealth, but the mechanisms for distributing it have failed to keep pace. A large share of the gains has been absorbed by capital owners, founders, and a small group of individuals with scarce technical skills, while wages and living standards for more than half of the workforce have stagnated.
In other words, technology has boosted efficiency without improving how most people experience their lives.
A Small Story | The “Salary Ceiling” of an Engineer
In Stockholm, Sweden, a software engineer with nearly ten years of experience, Allen Zhong, complained: “The AI models my company owns are worth more than 300 engineers, but my salary hasn’t increased in three years.”
Ironically, during the same period, his company’s founder saw his personal net worth triple within a year after successfully raising funding for a large AI model.
The returns on innovation are becoming increasingly concentrated, while distribution systems remain stuck in an earlier era.
More Than Fear of Unemployment—It Is Fear of Skill Obsolescence
Compared with traditional unemployment anxiety, what more people feel today is skill anxiety. Even if a job has not yet been directly replaced by AI or automation, the constant emergence of new technologies, tools, and workflows forces workers to keep learning—or risk being left behind.
A lingering question haunts many professionals: “If I don’t master these new tools, can I still survive in this industry?”
This anxiety is particularly pronounced among mid-level white-collar workers and technical professionals.
At a Japanese advertising firm, a mid-level analyst admitted: “Every day there’s a new data-analysis platform or AI plugin. If I don’t learn it, my efficiency and competitiveness will fall behind.”
The distinctive feature of skill anxiety is that, unlike unemployment, it is not immediate—but it is persistent and invisible. Even those who keep their jobs often live with constant pressure, tension, and insecurity.
A Small Story | A Middle-Aged Engineer in a Korean Company
At a major electronics firm in Seoul, engineers are required to learn AI coding tools. Kim Lihun, a 38-year-old engineer, must pick up his children and handle household responsibilities after work, yet the company has made its position clear: “If you don’t learn AI, you may be eliminated.”
“I’m not unemployed,” he said helplessly. “I’m being forced to upgrade myself like software, endlessly updating to the next version. Even when I’m with my kids in the evening, my mind is still occupied by code and algorithms. I don’t even have time to catch my breath.”
Kim’s experience reflects the reality faced by many professionals: even when their jobs appear secure, the speed of technological change keeps them in a constant state of tension and unease—as if life itself has been put on fast-forward.
Reporter’s Reflection
Technology Is Not the Problem—Society Is Underprepared
Yuanyin
Distribution systems remain locked in outdated frameworks, preventing technological dividends from spreading to the majority of workers. Education and reskilling programs are slow to evolve and struggle to meet the demands of the AI era. Traditional labor protections are ill-suited to a rapidly changing employment landscape.
As AI and automation advance, some worry whether they will still have value in the future; others feel that they are “not being replaced, but being left behind.” Technology itself is not the threat—but the uncertainty about the future it creates will continue to expand, becoming a central source of anxiety in the technological age.
