A recent report reveals that artificial intelligence is already replacing thousands of jobs each month during the times when U.S. job market is struggling amid global trade uncertainty.
Alarming Situation As AI Replacing Thousands Of Jobs Already
During July alone, the increased adoption of generative AI technologies by private employers led to more than 10,000 lost jobs according to the outplacement firm Challenger, Gray, and Christmas said in a report filed this week.
Moving ahead, this firm noted that AI is one of the top five reasons behind job losses this year.
It appears that the employers only added 73,000 jobs in July as per the new labor figures revealed on Friday.
This is indicating a much worse result than forecasters expected as the companies announced more than 806,000 job cuts in the private sector through July, the highest number for that period since 2020.
When it comes to the technology industry, they are seeing the fiercest cuts, with private companies announcing more than 89,000 job cuts, an increase of 36 percent compared to a year ago.
More than 27,000 job cuts have been directly linked to artificial intelligence since 2023 as revealed by the Challenger, Gray, and Christmas.
Industry Is Being Reshaped
Further adding, “the industry is being reshaped by the advancement of artificial intelligence and ongoing uncertainty surrounding work visas, which have contributed to workforce reductions.”
According to the career platform Handshake, the impact of artificial intelligence is most severe among younger job seekers, with entry-level corporate roles usually available to recent college graduates declining by 15 percent over the past year.
They have also observed the use of “AI” in job descriptions has increased by 400 percent during the last two years.
Last month, The Wall Street Journal reported that Ford CEO Jim Farley would replace “literally half of all white-collar workers in the U.S.”
Although, experts argue that AI is currently affecting the job market in roundabout ways, such as many companies coming under intense pressure to cut costs because of the uncertain economic climate pushed by Trump’s tariff policy and concerns about increasing inflation.
The other factors is now many companies are spending money on AI software instead of hiring new staff.
“There’s basically a blank check to go out and buy these AI tools. Then they go out and say, as far as head count: No more hiring. Just, ‘stop.’ So that immediately freezes the job market,” said the CEO of The Josh Bersin Company workforce consultancy, Josh Bershin in a media interaction.
