AI is driving more job cuts and weighing on hiring, economists say
Summary
Many companies are cutting jobs as they invest more in artificial intelligence (AI), especially in the tech industry. While layoffs linked to AI are rising, the technology also seems to be causing companies to hire fewer new workers, particularly affecting junior and entry-level positions.Key Facts
- AI-related job cuts total about 50,000 this year, making up 17% of all announced layoffs in 2026.
- Companies like Intuit, Meta, and Cisco have announced large layoffs to focus more on AI technology.
- Some experts say AI investments help reduce labor costs but may not fully replace workers yet.
- Economists observe AI’s bigger impact is fewer new hires rather than mass layoffs.
- Entry-level jobs are more likely to be affected by AI automation than senior roles.
- Studies indicate AI reduced monthly job growth by 16,000 and raised unemployment slightly.
- AI may change the types of jobs available, making it harder for laid-off workers to find similar roles.
- Some workers and experts suggest companies should retrain employees instead of cutting them.
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