Today: December 5, 2025
November 7, 2025
1 min read

Layoffs in the US reach their highest level in two decades driven by the advancement of AI

Layoffs in the US reach their highest level in two decades driven by the advancement of AI

The advertisements of Layoffs in US companies experienced a strong rebound in Octobercoinciding with the growing influence of the artificial intelligence (AI) in the labor market.

According to a report published this Thursday by the consulting firm Challenger, Gray & ChristmasAmerican companies announced more than 153 thousand job cuts during the past month.

This figure represents an increase of 175% compared to the same period in 2023 and the largest increase recorded in October since 2003, he noted. cnn.

In the first ten months of the year, the total number of layoffs exceeded one million, 65% more than in the same period of the previous year.

“This is the highest total for October in more than 20 years and the highest total for a single month in the fourth quarter since 2008. As in 2003, a disruptive technology is changing the landscape,” the report notes.

Layoffs in the US: AI and the new challenges of the labor market

The firm highlighted that the labor market in the US continues to adjust after the post-pandemic boom, although it stressed that the adoption of AI, together with the moderation of consumer and business spending and the increase in operating costs, is generating a new wave of restructuring.

Heavyweight companies like Amazon and Target have announced significant staff cuts in recent months, some directly attributing the reductions to the impact of automation and AI.

However, analysts They clarify that the layoff announcements do not immediately translate into an increase in unemploymentsince many workers relocate or remain employed until the plans are executed.

Lack of official data complicates the picture

The report is released amid the prolonged shutdown of the US federal government, which has paralyzed the release of official economic statistics, including the long-awaited employment report from the Department of Labor.

The September report, scheduled for October 3, was never published, and the October report has also been suspended.

This situation has complicated the work of economic policy makers, such as Federal Reserve officials, by depriving them of key data on the unemployment rate and payroll growth, he said. cnn.

In the absence of official information, investors and policymakers are turning to alternative sources, such as ADP’s private sector payrolls report and data from Challenger, Gray & Christmasto evaluate the real state of the American economy.

However, Federal Reserve Chairman Jerome Powell recently warned about the limitations of these sources:

“There is a possibility that it makes sense to be more cautious,” he said, reminding that private data is not a substitute for government figures, considered the “gold standard” for measuring the world’s largest economy.

The prolonged absence of these indicators, Powell warned, could affect monetary policy decision-making and complicate the evaluation of future interest rate cuts.

Source link

Latest Posts

They celebrated "Buenos Aires Coffee Day" with a tour of historic bars - Télam
Cum at clita latine. Tation nominavi quo id. An est possit adipiscing, error tation qualisque vel te.

Categories

Bacheles diplomacy
Previous Story

Castillo, 40 thousand dollars for promotion to police officers

The ISP issues an alert for a drug that is deteriorated and could affect your health
Next Story

The ISP issues an alert for a drug that is deteriorated and could affect your health

Latest from Blog

Go toTop