A new report just hit, and it paints a stark picture: artificial intelligence is already shaking up the job market. Companies in the U.S. cut over 10,000 private sector jobs in July alone because they started using AI. This trend means AI is now considered one of the top five main factors leading to job losses by 2025.
This news comes as overall job cuts across various industries are at their highest since 2020. Companies have slashed a total of 806,000 positions from their payrolls. The tech sector itself has faced a significant hit, with more than 89,000 jobs reduced. Adding to the concern, new hires this year reached only 73,000, which is much lower than many experts had predicted.
Looking closer at AI’s influence, the report highlights a clear, growing trend. Since 2023, AI has been directly responsible for over 27,000 job terminations. This specific impact is especially felt by new employees who are just starting their careers and looking for entry-level roles.
Handshake, a popular job search platform for Gen Z, confirms this challenging situation for new talent. They found that job postings for entry-level positions, perfect for recent graduates, dropped by 15%. There’s another interesting bit of data: over the last two years, employers have included the term “AI” in their job descriptions 400% more often. This clearly shows how quickly companies are looking for different skills, shifting what they need from new hires.