Former Labor Secretary Robert Reich is pushing back against tech-industry optimism that artificial intelligence will usher in shorter workweeks without financial sacrifice. In a recent essay, the economist argues that the reality for most workers could be starkly different: fewer hours may come with proportionally lower pay, leaving the working class more vulnerable.
Reich, who served in the Clinton administration, points to the current economic landscape—where corporate profits and stock indices soar—while noting that the average worker's experience remains bleak. He describes the situation for many Americans as “sh*tty,” a blunt assessment of stagnant wages amid rising costs.
The essay takes aim at prominent business leaders, including Zoom CEO Eric Yuan and JPMorgan Chase CEO Jamie Dimon, who have suggested that AI could enable four- or even three-day workweeks. Reich dismisses such predictions as “pure rubbish,” asserting that a shorter workweek will likely mean four days' pay for four days of work, not a continuation of current salaries.
Why the Pay Gap Persists
Reich grounds his argument in the productivity-pay gap—the divergence between economic output and worker compensation. In the U.S., productivity has climbed steadily, but the share of that productivity flowing to workers has remained flat since the 1970s. This trend, he contends, shows that gains from technological advances have historically accrued to employers and shareholders, not employees.
“So, as AI takes over their current work, most workers will probably get poorer or have to take additional jobs to maintain their current pay,” Reich writes. He points to recent labor market data as evidence: full-time job growth in 2025 was nearly stagnant, while gig work has expanded as layoffs and wage cuts hit low-wage earners.
The former labor secretary warns that AI could accelerate the shift toward a “two-tiered society,” with a small elite capturing outsized wealth while a vast number of people struggle to get by. Rather than delivering an “age of abundance,” he argues, new technologies are reinforcing existing inequalities.
Reich's central thesis is that the outcome depends on power dynamics—who controls the technology and how its benefits are distributed. Without policy interventions or collective bargaining power, he suggests, workers may continue to lose ground.
The essay adds to a growing debate about AI's impact on employment, with some experts warning of permanent job displacement while others see potential for new roles. Reich's perspective offers a cautionary note for those expecting technology to automatically improve living standards.
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