AI Workforce Displacement Accelerates, Exposing Credit Risks in Service Sectors

Block's massive workforce reduction (nearly half its staff per Jack Dorsey) exemplifies AI's rapid displacement of service sector jobs, extending beyond tech to wealth management and real estate. This trend coincides with rising 'credit cockroaches' in private credit markets, including a $135M Jefferies exposure to software firms. The disruption occurs as unemployment sits at 4.3%, suggesting broader labor market vulnerability.