Author(s)

Jiaqi Xu, Yinuo Xu, Yiling Yang, Jingfei Yu

Corresponding Author

Jiaqi Xu

Abstract

This paper explores the structural shifts in economic paradigms amid the transition from Industry 3.0 to 5.0, focusing on the emergence of the "feeling economy" as a response to artificial intelligence's increasing automation of physical and cognitive tasks. It argues that while AI enhances efficiency in data processing and routine cognitive work, it simultaneously elevates the demand for human labor centered on emotional intelligence (EI), empathy, and creative interpersonal skills—areas where machines currently lack comparability. The study analyzes the reconfiguration of labor markets, highlighting a transition from cognitive-skill dominance to EI-centric roles, as validated by labor productivity theories and Pareto optimality frameworks. It further examines critical imbalances, such as labor shortages in emotional service sectors due to an overemphasis on STEM education and inadequate training systems. They are juxtaposed with a surging demand driven by rising disposable incomes and shifting consumer preferences toward emotional value. This research contributes to understanding post-AI economic resilience and labor market adaptability.

Keywords

Labor market; Artificial intelligence; Feeling economy; STEM