Navigating AI Job Loss and the Economy: Challenges and Opportunities.

AI Jobs Cuts in May 2023.

AI ART 2023 by Midjourney + the author.

Based on data from Challenger, Gray & Christmas, AI alone caused approximately 4,000 job cuts in the US last month.

In May, American employers reported more than 80,000 layoffs, marking a 20% increase compared to the previous month and a staggering 287% increase compared to last year.

Among these 80,000 job cuts, approximately 5% were attributed to AI.

Although worries regarding AI-induced unemployment remain, experts also emphasize the potential for job creation and economic advancement within the rapidly developing AI sector.

The critical question is:

Which aspect will outpace the other? The job loss or the job creation?

Many jobs won’t be too secure going forward, right?

The potential consequences of widespread job loss can indeed be concerning.

When many people lose their jobs, the economy can suffer significant setbacks.