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US Layoffs Haven't Increased, and New Tech Industry Hiring Balances Firings
U.S. layoffs are currently comparable to pre-pandemic levels, although higher than the hiring spree of 2022. Layoffs as a percentage of the workforce have remained relatively stable outside of the pandemic period. The tech industry presents a more nuanced picture, with increased layoffs in the information sector, including tech workers. However, hiring in the information sector, including media and entertainment, has also increased, creating a balance. Layoffs at prominent tech companies attract significant attention, potentially overshadowing broader workforce growth. Tech companies might be restructuring their workforce to adapt to the rising demands of artificial intelligence. Businesses are increasingly utilizing AI, yet layoffs are often unfairly attributed to AI's impact, a trend known as "AI washing." Employment changes directly related to AI remain relatively small overall at this point in time. The majority of businesses using AI report no change in staff size. AI related employment increases are currently more common than decreases.