Nobel-winning economist Peter Howitt says Taiwan and other advanced economies
should look beyond manufacturing as AI reshapes the job market.

Speaking at a forum in Taipei, Howitt said manufacturing jobs have been
falling for years, even in countries where output is still rising.

He said AI may cut some jobs, but over time it should also create new ones,
especially in service industries.

Howitt described AI as a general-purpose technology, like electricity or
computers, that can disrupt labor markets before wider gains appear.

He said governments should respond with more investment in education, worker
retraining, and new energy development.

Howitt also said innovation depends on competition, trade, intellectual
property protection, and cooperation between government, business, and
universities.

After the forum, he also engaged with a student delegation from Asia
University in a discussion on AI, education, and social fairness.

He pointed to TSMC as an example of how industrial success can grow from
close coordination with government support.

At the same event, he told students not to chase only the safest jobs, but to
build skills they care about for a fast-changing AI future.

(PB)