By John Quiggin
Publication Date: 2026-03-16 03:41:00
The announcement that Australian software giant Atlassian will lay off 10% of its employees has brought the debate over artificial intelligence (AI) and jobs closer to home.
While a broader question about AI’s usefulness remains unresolved, there is no longer any doubt that it has transformed the software industry. Developers report massive productivity increases by using Anthropic’s AI-powered coding tool Claude.
The specter of AI-related job losses is the subject of much debate. However, almost entirely missing from this debate is the idea that the productivity gains associated with AI should lead to a reduction in working hours, rather than an increase in wages or, more likely, corporate profits.
Concern about job losses due to new technologies dates back to the Industrial Revolution and the machine-destruction riots it sparked “Luddites.” The workers at the time were right to revolt. The initial effect of the factory system was not just to destroy the hut…
