What is Jevons paradox?

Jevons paradox, named after economist William Stanley Jevons in 1865, says that as a resource becomes more efficient and cheaper, consumption increases rather than decreases. In this context, AI makes call center work cheaper, so companies buy more of it.

How much do Filipino call center workers earn?

Filipino call center workers earn wages of 15,000 to over 120,000 Philippine pesos per month, roughly $243 to $1,948. In the U.S., the average monthly wage is about $2,866.

AI Business & IndustryLarge Language ModelsFortune AI1h agoAug 31, 2026, 04:00 JST2 min read

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

Send on LINE

Key takeaway

Philippine call center jobs nearly doubled to 2 million over 10 years.
Unemployment fell in both the Philippines and India, suggesting AI hasn't displaced offshore workers.
An economist calls this Jevons paradox, where cheaper AI-driven work increases demand.

3 Key Points

What happened
Apollo chief economist Torsten Slok reports that Philippine call center employment nearly doubled to 2 million from 2016 through 2025, rising every year. Meanwhile, unemployment in the Philippines fell from 9% to about 5% between 2021 and July 2026, and in India from around 7% to 6%.
Why it matters
Slok argues this contradicts the idea that AI is displacing white-collar workers, citing Jevons paradox: as AI makes call center work cheaper and faster, companies buy more of it. The Brookings Institution estimates 86% of customer service tasks have high automation potential, yet employment keeps growing.
What to watch
A 2023 study found an AI assistant boosted call center agent productivity by 14% per hour, suggesting AI may increase demand for these roles. Some experts, however, note AI still struggles with complex issues and that some companies value human interaction for brand reasons.

Ask the AI about this article →

Summaries like this, in your inbox every morning.

Get news like this every morning — free

Context & Analysis

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.

FAQ

What is Jevons paradox?: Jevons paradox, named after economist William Stanley Jevons in 1865, says that as a resource becomes more efficient and cheaper, consumption increases rather than decreases. In this context, AI makes call center work cheaper, so companies buy more of it.
How much do Filipino call center workers earn?: Filipino call center workers earn wages of 15,000 to over 120,000 Philippine pesos per month, roughly $243 to $1,948. In the U.S., the average monthly wage is about $2,866.

Fortune AIRead Original Article

Send on LINE