mlsanityData to 14 Oct 2026

How AI Forecasts AI Jobs: Benchmarking LLM Predictions of Labor Market Changes

arXiv 2510.23358 ↗First posted 27 Oct 2025cs.CLcited by 0

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Abstract (arXiv)

Artificial intelligence is reshaping labor markets, yet we lack tools to systematically forecast its effects on employment. This paper introduces a benchmark for evaluating how well large language models (LLMs) can anticipate changes in job demand, especially in occupations affected by AI. Existing research has shown that LLMs can extract sentiment, summarize economic reports, and emulate forecaster behavior, but little work has assessed their use for forward-looking labor prediction. Our benchmark combines two complementary datasets: a high-frequency index of sector-level job postings in the United States, and a global dataset of projected occupational changes due to AI adoption. We format these data into forecasting tasks with clear temporal splits, minimizing the risk of information leakage. We then evaluate LLMs using multiple prompting strategies, comparing task-scaffolded, persona-driven, and hybrid approaches across model families. We assess both quantitative accuracy and qualitative consistency over time. Results show that structured task prompts consistently improve forecast stability, while persona prompts offer advantages on short-term trends. However, performance varies significantly across sectors and horizons, highlighting the need for domain-aware prompting and rigorous evaluation protocols. By releasing our benchmark, we aim to support future research on labor forecasting, prompt design, and LLM-based economic reasoning. This work contributes to a growing body of research on how LLMs interact with real-world economic data, and provides a reproducible testbed for studying the limits and opportunities of AI as a forecasting tool in the context of labor markets.

Key facts. No citing papers in the map yet (data through 14 Oct 2026). Builds on 13 of its 34 references that are in the map. First posted on arXiv 27 Oct 2025.

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13 of 34 references.

References · 13

  1. 2023GPT-4 Technical Reportcited by 18,396
  2. 2023Llama 2: Open Foundation and Fine-Tuned Chat Modelscited by 13,028
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  4. 2021Autoformer: Decomposition Transformers with Auto-Correlation for Long-Term Series Forecastingcited by 1,676
  5. 2022FEDformer: Frequency Enhanced Decomposed Transformer for Long-term Series Forecastingcited by 1,210
  6. 2023One Fits All:Power General Time Series Analysis by Pretrained LMcited by 632
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  8. 2023UniTime: A Language-Empowered Unified Model for Cross-Domain Time Series Forecastingcited by 144
  9. 2024LLM economicus? Mapping the Behavioral Biases of LLMs via Utility Theorycited by 47
  10. 2024Large Language Models: An Applied Econometric Frameworkcited by 32
  11. 2023Assessing Look-Ahead Bias in Stock Return Predictions Generated By GPT Sentiment Analysiscited by 31
  12. 2024Can Base ChatGPT be Used for Forecasting without Additional Optimization?cited by 3
1 more
  1. 2025Revealing economic facts: LLMs know more than they saycited by 3

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  2. 2024Computational Job Market Analysis with Natural Language Processing
  3. 2025Enhancing Talent Employment Insights Through Feature Extraction with LLM Finetuning
  4. 2025Predicting Effects, Missing Distributions: Evaluating LLMs as Human Behavior Simulators in Operations Management
  5. 2024AI Predicts AGI: Leveraging AGI Forecasting and Peer Review to Explore LLMs' Complex Reasoning Capabilities
  6. 2024Can LLMs Replace Economic Choice Prediction Labs? The Case of Language-based Persuasion Games
  7. 2024TheAgentCompany: Benchmarking LLM Agents on Consequential Real World Tasks
  8. 2026Agentic AI and Occupational Displacement: A Multi-Regional Task Exposure Analysis of Emerging Labor Market Disruption