Summary
Job cuts in the U.S. increased significantly towards the end of 2025, with concerns over more layoffs continuing into 2026. Tariffs and the growing use of artificial intelligence (AI) are expected to affect various sectors, leading to potential job losses. Consumers, analysts, and experts are worried about the impact on employment due to economic uncertainties and AI advancements.
Key Facts
- Job cuts rose sharply in late 2025 among major U.S. employers.
- Federal Reserve Chair Jerome Powell described the earlier part of 2025 as a "low hire, low fire" period, meaning few job gains or losses.
- Economic uncertainties, tariffs, and AI advancements are influencing future job market trends.
- Tariffs may continue to hurt sectors like retail and services due to reduced consumer spending.
- President Trump’s policies, such as immigrant restrictions, have impacted labor demand.
- AI could displace many white-collar jobs, especially in roles involving repetitive cognitive tasks.
- Many companies have already announced layoffs, citing AI’s role in replacing human jobs.
- Physical labor roles remain less affected by AI, although the use of robotics is growing rapidly.
