Invisible Unemployment: The Growing Crisis Affecting Jobs #shorts

Name: Invisible Unemployment: The Growing Crisis Affecting Jobs #shorts
Uploaded: 2026-01-12T17:35:58+00:00
Duration: 1 min 23 s
Channel: Jason M. Lemkin
Description: In a brief YouTube short, Jason M. Lemkin introduces the concept of “invisible unemployment,” a hidden wave of job loss that isn’t yet reflected in…

12 Jan 2026 · 1 min

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1:23

In a brief YouTube short, Jason M. Lemkin introduces the concept of “invisible unemployment,” a hidden wave of job loss that isn’t yet reflected in official statistics. He points to companies like Shopify achieving record ARR growth without adding headcount, and a broader trend of CEOs keeping headcount flat while back‑filling roles with AI tools rather than hiring new people. This results in dramatically higher ARR per employee, the elimination of entry‑level and mid‑pack positions, and a shift toward more demanding, higher‑skill work that many workers are unwilling or unable to perform. Lemkin warns that by the end of 2026 senior executives and the remaining workforce will face massive stress as the pool of entry‑level talent dries up. He acknowledges that VCs may benefit from leaner, faster‑moving companies, but calls the trend a “terrible thing.” A second speaker counters that younger workers can mitigate the impact by reskilling and taking personal agency, though Lemkin notes that many young people are reluctant to endure the increased workload and intellectual demands of the remaining roles.

Chapters

I call it invisible unemployment and it's all around us and it's going to grow this year. It doesn't show up in the government numbers yet, but it's everywhere. It's Shopify saying for the third year in a row, they can hit insane growth without adding any headcount for the third year. It's every single CEO wanting to keep headcount flat and backfill with AI. This is not AI. These are not robots. Firing us, okay? This is tighter and tighter companies, radically higher ARR per employee, and no one wanting to hire entry-level people, no one wanting to hire mid-pack people, no one wanting to hire work-from-home people. So, I call it invisible unemployment, and it may benefit us as VCs, which is a terrible thing to say. It may benefit, it'll make our companies more efficient and make us more money and make them move faster. And iterate faster. But I am really worried by the end of this year, we're going to feel, smell, and live in this invisible unemployment. And it's, it's going to be a big deal. There'll be— this is the year we will see the end of so many entry-level sales jobs. And so all these entry-level jobs are— it is— they are truly disappearing in front of us. And then the senior execs and the entry level are going to be under massive stress in 2026. Massive stress.
Unlike 55-year-olds, 22-year-olds can reskill and you can save yourself. And I, you know, we've all been through periods of our life where things didn't work out. So I do think they have to have a little more agency. If at 22 you're saying it's not fair, woe is me, then I think you need to have a lot more agency. So that's what I believe. But I'm not saying that's what they believe.
And kids don't have— most of them don't want to grind. The thing is, these entry-level jobs, these AI jobs, not only might you not be skilled for it, their heart— They're like more work than the old jobs. They're harder jobs and they're more hours and they're more intellectual and they're more work. And throughout history, just most people have not wanted to work that hard.