Pope Leo XIV warns of AI effects on labor markets and unemployment

Pope Leo XIV expressed concerns regarding potential job losses due to artificial intelligence, stating in his encyclical that mass unemployment could lead to a 'social calamity.' Traders on Kalshi assign a 60% probability that U.S. unemployment will exceed 8% before 2030, with a 47% chance of it surpassing 9%. In May, a 78% likelihood was placed on AI being the primary cause of job cuts. Additionally, odds of a recession in 2027 are seen at 45%, suggesting potential economic challenges ahead for labor markets.