A recent report indicates that AI has already led to tens of thousands of job losses in the United States. Gray & Christmas, a firm specializing in executive outplacement, notes that the tech sector is undergoing significant restructuring, with job cuts rising by 36%.
In fact, the rapid adoption of AI by private companies resulted in more than 10,000 job losses in just July. This information comes from a report released by Challenger, Gray & Christmas, which lists AI among the top five contributors to unemployment this year.
The firm anticipates that advancements in technology, such as automation and AI, could lead to “20,219 job cuts by 2025,” with an additional 10,375 linked directly to AI implementation, suggesting a notable increase in job suppression due to AI.
“The technology sector will be the hardest hit, with projected job cuts totaling 89,251 by 2025,” the company stated, indicating a 36% jump from the 65,863 job losses reported up to July 2024.
Additionally, the firm pointed out that changes in the industry are influenced by technological advancements and ongoing uncertainties regarding work visas, which are further compressing the workforce.
Employment announcements are also lagging, with only 86,132 jobs expected to be added by July 2025.
Breitbart News previously highlighted how AI affects recent college graduates. Data from the Burning Glass Institute reveals that, diverging from historical trends, there’s a noticeable decline in graduates entering the workforce a year post-graduation. This downturn spans across various fields, rendering both visual arts and engineering majors in tough spots. Interestingly, unemployment rates for college graduates are rising faster than for those with only a high school diploma or an associate degree.
Employers are recognizing this shift. For example, at Hirewell in Chicago, marketing clients are increasingly opting for AI solutions instead of hiring entry-level staff. “It’s a significant change,” noted Bill Balderaz, CEO of consulting firm Futurety, which utilizes AI for social media tasks.
Job applications have surged by 30%, though for positions listing “AI” in their descriptions, the increase is a staggering 400% over the past two years.
As previously reported by Breitbart News, Dario Amodei, CEO of one of the leading AI companies, cautions that AI could wipe out many positions in technology, finance, and consulting, jeopardizing half of all entry-level white-collar jobs.
Amodei believes that both AI companies and the US government should refrain from sugarcoating the possible outcomes. “We have a responsibility to be transparent about what lies ahead,” Amodei shared in an Axios interview back in May. “I don’t think this is really on people’s radar.”
