The loss of jobs in May was not solely due to Artificial Intelligence (AI) but also attributed to business closures. The mass layoffs during the month of May resulted in 19,600 individuals losing their employment.
A recent report from US consulting firm Challenger, Gray & Christmas revealed that in May, nearly 4,000 people in the US lost their jobs due to the implementation of artificial intelligence (AI). According to the report, approximately 4.9% of job cuts that occurred in May were attributed to employers citing AI as the primary reason for the layoffs.
According to IANS, In May, US-based employers announced 80,089 cuts, a 20 percent increase from the 66,995 cuts announced one month prior, plus, it is 287 percent higher than the 20,712 cuts announced in the same month in 2022.
“Consumer confidence is down to a six-month low and job openings are flattening. Companies appear to be putting the brakes on hiring in anticipation of a slowdown,” said Andrew Challenger, a labour expert and Senior Vice President of Challenger, Gray & Christmas.
This year, companies have revealed intentions to eliminate 417,500 jobs, marking a substantial 315 percent increase compared to the 100,694 cuts announced during the same period last year. This January-May total is the highest since 2020, which witnessed 1,414,828 job cuts.
In May, the technology sector witnessed the highest number of job cuts, with 22,887 announced, contributing to a total of 136,831 cuts this year. This represents a significant surge of 2,939 percent compared to the 4,503 cuts reported during the same period last year.
Retailers announced the second-most cuts in May with 9,053. Retail has announced 45,168 cuts so far this year, up 942 percent from the 4,335 announced through May 2022, the report said.
Last month, the Automotive sector reported a significant increase in job cuts with a total of 8,308 positions affected. This brings the total for this year to 18,017, marking a substantial 235 percent surge compared to the 5,380 job cuts announced during the same period last year.
In the Financial industry, there has also been a notable rise in job cuts. Through May, financial firms have announced a total of 36,937 cuts, which represents a substantial 320 per cent increase from the 8,788 cuts reported during the same period in 2022, the report mentioned.
Inputs from IANS
