Impact of AI on Employment Trends
EJ Antoni, who serves as Chief Economist at the Heritage Foundation, recently shared insights on how artificial intelligence (AI) influences job dynamics, positing that it is ultimately competition that spurs job growth. Meanwhile, Cheryl Casson raised alarms about the valuation of AI, shifting investment patterns, and potential national security risks, particularly regarding China.
New findings indicate that U.S. workers who don’t utilize AI are at a greater risk of layoffs compared to their counterparts who do. A Gallup survey revealed that 62% of workers who were laid off did not engage with AI, using it less than once a year. Conversely, 50% of those currently employed do not use AI, with another 22% using it infrequently, which is several times per month or year. Among the laid-off population, only 16% were regular users of AI.
Currently employed individuals tend to use AI more frequently—28% reported using it daily or several times a week, whereas only 22% of those who were recently laid off were engaged with AI in similar capacities.
Ford’s Rehire Strategy
Interestingly, Ford has begun to reinstate seasoned engineers, implying that reliance on AI didn’t meet certain performance objectives.
Gallup pointed out that these trends persist even after considering factors like age, education, and industry experience, indicating that workers who don’t engage with AI are becoming increasingly vulnerable in the job market.
Specific sectors, like technology, face heightened risks. Technology workers who claim to engage with AI only once a month or less are three times more likely to be laid off—18% compared to just 6% who use AI at least monthly.
Gallup also noted that layoffs are more prevalent in tech compared to other fields, accentuating the correlation between AI usage and job stability in this industry.
Microsoft’s Job Cuts
Despite widespread concerns, the survey confirmed that U.S. workers see ongoing job cuts but don’t see AI or automation as the main culprits. In the first quarter of 2026, around 21% indicated their companies had made layoffs, a percentage that has held steady after substantially increasing from mid-2022 to late-2025.
Tobacco Industry Job Reductions
Gallup surveyed laid-off workers about the reasons behind their job losses, finding that only 1% attributed their layoffs to AI or automation. Many cited factors like organizational restructuring or downsizing, suggesting these broader business strategies could still be influenced by AI considerations, even if not explicitly communicated as the cause of job loss.
