{"id":6281,"date":"2026-08-30T17:40:12","date_gmt":"2026-08-30T17:40:12","guid":{"rendered":"https:\/\/crosscountrymovingteams.com\/?p=6281"},"modified":"2026-08-30T17:40:12","modified_gmt":"2026-08-30T17:40:12","slug":"the-ai-boom-hasnt-stopped-u-s-companies-from-hiring-cheap-offshore-labor-and-overseas-call-center-employment-is-still-skyrocketing","status":"publish","type":"post","link":"https:\/\/crosscountrymovingteams.com\/?p=6281","title":{"rendered":"The AI boom hasn\u2019t stopped U.S. companies from hiring cheap offshore labor, and overseas call center employment is still skyrocketing"},"content":{"rendered":"
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But as more companies adopt agentic AI in hopes of replacing or making human workers more efficient, one top economist has noted customer service roles\u2014particularly those overseas\u2014are only growing.<\/p>\n

Read more Key takeaways\u00a0from the Fed\u2019s annual\u00a0Jackson Hole\u00a0conference<\/a><\/p>\n

Citing data from the IT & Business Process Association of the Philippines, Apollo chief economist Torsten Slok noted in a recent blog post that from 2016 through 2025, call center employment in the Philippines has risen each year, nearly doubling to 2 million over the 10-year span. <\/p>\n

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He also found from 2021 to July 2026, unemployment rates in the Philippines have decreased from 9% to about 5%, and in India decreased from around 7% to 6%, suggesting AI has not displaced offshore workers.<\/p>\n

\u201cIf AI were displacing white-collar work at scale, you would expect to see it first in the Philippines and India, where business process outsourcing (call centers, IT support, back-office processing) accounts for a large share of employment,\u201d Slok wrote last week. \u201cInstead, the unemployment rate in both countries has continued to trend lower.\u201d<\/p>\n

The Philippines dethroned India as the largest call center employer about 15 years ago.<\/p>\n

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Offshore call center jobs began booming in the late 1990s and early 2000s as a cost-cutting measure. The labor is considerably cheaper overseas than in the U.S., with Filipino call center workers earning wages of 15,000 to over 120,000 Philippine pesos per month, or about $243 to $1,948. In the U.S., the average monthly wage for call center workers is about $2,866, according to Indeed.<\/p>\n

But these jobs are also among the most susceptible to AI displacement. The Brookings Institution estimated 86% of customer service representative tasks had high automation potential.\u00a0<\/p>\n

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The apparent contradiction of the job\u2019s potential to be automated alongside rising employment points to a centuries-old economic paradox reflected across labor more broadly, according to Slok.<\/p>\n

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\u201cThis is Jevons paradox in action,\u201d he wrote. \u201cAs AI makes call center work cheaper and faster, companies are buying more of it, not less.\u201d<\/p>\n

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Jevons paradox refers to an observation made by English economist William Stanley Jevons in 1865: The invention of the Watt steam engine made coal a more efficient energy source. But instead of coal consumption decreasing because of increased efficiency, consumption skyrocketed as energy became cheaper.<\/p>\n

In the age of AI, Jevons paradox has been resurrected and applied to how the technology may be impacting the labor market: While tech leaders like Anthropic CEO Dario Amodei initially predicted AI will replace white-collar workers, Slok instead posits the cost of professional work will fall as AI boosts task efficiency, increasing demand for certain roles and ultimately expanding available jobs.\u00a0<\/p>\n

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\u201cLower cost per interaction does not mean fewer interactions,\u201d he said. \u201cIt means more customers served, more channels opened and more markets worth reaching. The technology that was supposed to shrink the industry is fueling its expansion.\u201d<\/p>\n

Read more Europe\u2019s summer drought is so extreme that desertification is a growing threat<\/a><\/p>\n

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This is already being seen in some professions previously predicted to be replaced by AI. A decade ago, \u201cgodfather of AI\u201d Geoffrey Hinton declared radiology would one day no longer need to be performed by humans because of its potential to be automated. <\/p>\n

Instead, Christoph Herpfer, an economist and business administration professor at the University of Virginia\u2019s Darden School of Business, said the number of radiologists in the U.S. has actually increased by 10% over the past decade.<\/p>\n

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\u201cWe actually have a huge shortage of radiologists. So the exact opposite of this prediction has happened,\u201d he told Fortune<\/em>.<\/p>\n

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Labor economists are already seeing evidence of AI increasing the productivity of call center workers, which could bolster the role\u2019s demand. A 2023 led by Erik Brynjolfsson, director of the Stanford Digital Economy Lab, found that for more than 5,000 customer support agents, an AI-based conversational assistant tool increased productivity by an average of 14% per hour.<\/p>\n

His from a decade ago similarly found that an early AI feature able to translate listings on eBay increased international exports by 17.5%. Emma Harrington, an economics professor at the University of Virginia, believes this principle could be applied to today\u2019s AI boom.<\/p>\n

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\u201cWhat we\u2019re now seeing in the data might be a modern version of the same phenomenon,\u201d she told Fortune<\/em>. \u201cWe can trade labor more easily across countries when language can be traded more seamlessly.\u201d<\/p>\n

While some economists expect AI\u2019s strengths to bolster productivity and subsequent employment, others argue the technology\u2019s weaknesses will sustain the call center industry. <\/p>\n

Benjamin Shestakofsky, a sociologist and information science professor at Cornell University, told Fortune<\/em> AI may not yet be sufficiently trained to navigate the complexities of certain problems. Moreover, humans experience something akin to \u201cAI brain fry\u201d if inundated with an increased case load; AI may be able to increase how many customers agents can serve, but humans still have limitations in how much they are able to process.<\/p>\n

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In other cases, some companies may explicitly seek out human customer service agents simply because of their brand, according to Shestakofsky. As the world becomes more automated, it\u2019s sometimes a relief to talk to a human on the other line.<\/p>\n

\u201cEven if the LLMs get so good that eventually they can deal with those complex issues\u2014which I don\u2019t think they can do now\u2014I would still expect that you would see some companies seeing the value and offering more human interactions that help customers feel seen, feel like they\u2019re more than just a number on a spreadsheet,\u201d he said.<\/p>\n

Read more This baby boomer vs. Gen X Senate race emerges as key test of generational change in U.S. politics and what age is too old for Congress<\/a><\/p>\n

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A version of this story was published on Fortune.com on May 17, 2026.<\/em><\/p>\n

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    \n
  • New York added 30,640 tech workers in 3 years, surpassing San Francisco as AI hiring surges<\/li>\n
  • Bill Gates wants to tax robots to deter businesses from replacing humans with machines<\/li>\n
  • 90% of executives say AI hasn\u2019t boosted productivity. Some are still cutting jobs<\/li>\n
  • His boss asked if AI could replace human coders. Two weeks later, he and 160 colleagues were laid off in Beijing<\/li>\n<\/ul>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    \u201cThe technology that was supposed to shrink the industry is fueling its expansion,\u201d said Apollo chief economist Torsten Slok.<\/p>\n","protected":false},"author":1,"featured_media":6280,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[134],"tags":[],"class_list":["post-6281","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-automation"],"yoast_head":"\nThe AI boom hasn\u2019t stopped U.S. companies from hiring cheap offshore labor, and overseas call center employment is still skyrocketing - Cross Country Moving Team<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/crosscountrymovingteams.com\/?p=6281\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The AI boom hasn\u2019t stopped U.S. companies from hiring cheap offshore labor, and overseas call center employment is still skyrocketing - 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