In a new FEDS Note, the Federal Reserve Board analyzes how artificial intelligence is changing manufacturers’ hiring requirements and advertised wages. AI related skills appeared in 11% of manufacturing job postings after rising sharply in the second half of 2025, compared with 8% economywide. This growth suggests manufacturers are adopting AI more aggressively than conventional measures of the sector’s exposure to the technology would indicate. Machine learning drove much of the increase, while generative AI remained in fewer than 1% of manufacturing postings and was essentially absent from production roles through the first half of 2026. Across manufacturing, postings requiring AI skills advertised wages averaging about 70% more than all manufacturing postings over the sample period. For production occupations, the differential widened from 2023 and has since averaged roughly 30%. The analysis uses Lightcast online job postings through July 2026, which measure recruiting demand rather than actual vacancies or hiring outcomes and do not control for all differences in roles, employers or locations.
Federal Reserve Board analysis finds AI skills in 11% of manufacturing job postings and a 70% advertised wage differential
Federal Reserve Board analysis finds that AI related skills reached 11% of manufacturing job postings, led by demand for machine learning capabilities. AI related postings advertised wages averaging about 70% more across manufacturing, while the differential for production roles has averaged roughly 30% since 2023.