Philippine call center jobs nearly double to 2M despite AI boom

The data from Apollo chief economist Torsten Slok highlights a paradox in the AI labor debate. While many expect AI to replace white-collar jobs, the Philippine call center industry has grown steadily, nearly doubling to 2 million employees from 2016 to 2025. Unemployment rates in both the Philippines and India have declined, suggesting that AI has not yet displaced offshore workers at scale. This aligns with historical patterns like Jevons paradox, where efficiency gains lead to increased demand rather than reduced consumption.

Some economists believe AI will continue to boost productivity and employment. A 2023 study found that AI tools increased call center agent productivity by 14% per hour, and earlier research showed AI translation boosted eBay exports. However, experts also point out limitations. AI may not handle complex issues well, and humans can experience cognitive overload. Some companies deliberately seek human agents for brand differentiation, offering a more personal touch.

The debate extends beyond call centers. A decade ago, AI pioneer Geoffrey Hinton predicted radiologists would be replaced, but the number of radiologists in the U.S. has actually risen by 10%. This suggests that AI might augment rather than replace human labor in many fields, but the long-term trajectory remains uncertain.