A recent report from the US-based consulting firm Challenger, Gray & Christmas has revealed that the implementation of artificial intelligence (AI) has resulted in a significant loss of jobs in the United States. In the month of May alone, approximately 3,900 individuals were laid off due to AI, accounting for roughly 4.9 per cent of the total job cuts that took place during that period. The number of job cuts announced by US employers in May reached 80,089, marking a substantial 20 per cent increase compared to the previous month’s figure of 66,995. Furthermore, this number represents a staggering 287 per cent surge when compared to the 20,712 cuts announced in May of the previous year.
Andrew Challenger, a labour expert and Senior Vice President of Challenger, Gray & Christmas, shared his insights on the situation. He stated, “Consumer confidence is at its lowest point in six months, and job openings are showing signs of stagnation. Companies seem to be slowing down their hiring processes in anticipation of an economic slowdown.”
The report also highlights the cumulative job cuts planned for the year. According to the findings, companies have announced their intentions to eliminate a total of 417,500 jobs thus far, reflecting a significant 315 per cent increase compared to the 100,694 cuts announced during the same period last year. This figure is the highest recorded for the January-May period since 2020, during which 1,414,828 job cuts were reported.
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When examining specific sectors, the technology industry emerges as the one with the highest number of job cuts in May, totalling 22,887. Since the beginning of the year, the technology sector has witnessed a massive increase of 2,939 per cent in job cuts, with a total of 136,831 announced compared to 4,503 during the same period last year.
The retail sector takes the second spot in terms of job cuts announced in May, with 9,053 reported. Throughout the year, retailers have announced a total of 45,168 job cuts, marking an alarming increase of 942 per cent compared to the 4,335 cuts reported by May 2022.
In the automotive industry, 8,308 job cuts were announced in May alone, contributing to a total of 18,017 for the year. This figure indicates a notable increase of 235 per cent when compared to the 5,380 cuts reported during the same period last year.
Financial firms have also experienced significant job cuts, with a total of 36,937 announced through May. This represents a substantial 320 per cent increase compared to the 8,788 cuts reported during the same period in 2022.
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