AI Shock Hits Stock Markets; Plumbers and Electricians Out-Earning Entry-Level IT Professionals in India

New Delhi: The fear of Artificial Intelligence (AI) is now extending beyond the workplace, shaking stock markets worldwide. In recent days, global indices have tumbled amid concerns over Anthropic’s latest AI launch, and India is no exception. Shares of IT companies in the domestic market have also seen notable declines.

White-Collar Jobs Take a Hit:
Entry-level white-collar jobs, particularly in the tech sector, are facing unprecedented challenges. Traditionally, young professionals began their careers in IT and gradually advanced in their fields. However, with AI-driven automation, many are finding that plumbers, electricians, and other home-service professionals are earning more than entry-level tech workers, marking a shift that would have been hard to imagine a decade ago.

Global Market Impact – The “SaaSpocalypse”:
The launch of Claude Cowork, a new AI tool by Anthropic, triggered sharp declines in global markets. Brokerage firm Jefferies dubbed this phenomenon the “SaaSpocalypse”. The launch wiped out nearly $285 billion from the market capitalization of software companies worldwide.

Claude Cowork is a collaborative digital workspace where humans and AI agents work together, automating tasks such as legal services, sales, marketing, and data analysis. Investors fear that widespread adoption of such AI tools could replace human roles, even in companies that develop these tools, leading to a further drop in software stocks.

India Feels the AI Challenge:
The impact of AI is not limited to developed nations. In India, entry-level tech salaries are stagnating or declining, while home-service workers are earning competitive incomes. Data from Urban Company, a leading home-service platform, shows that during the first nine months of FY 2025-26, their partners earned an average of ₹28,322 per month.

Urban Company’s co-founder and CEO Abhiraj Singh Bhal noted on X that this data reflects a “quiet but important shift toward respectable, skill-based work.” He also emphasized that these earnings exceed statutory minimum wages and are comparable—or even superior—to entry-level IT salaries.

Comparing IT and Home-Service Earnings:

• Entry-level IT/ITES annual salary: Approx. ₹4 lakh (~₹33,333 per month).
• Urban Company top 20% service professionals: ₹42,418 per month.
• Top 10%: ₹47,471 per month.
• Top 5%: ₹51,673 per month.

This trend highlights the growing economic value of skilled manual labor and raises questions about the future of entry-level white-collar employment in an AI-driven world.