Morgan Stanley report states that the substitution effect of AI on the US job market is becoming increasingly significant

Morgan Stanley economists say that the proportion of job replacements caused by AI in the United States is still relatively small, but the trend is becoming increasingly evident. As of June 2026, the impact of AI substitution on the US unemployment rate is at most about 0.15%, higher than the 0.10% in December 2025, with the most obvious signs of substitution among young workers.