New Delhi: Artificial intelligence (AI) caused nearly 4,000 job losses in the US in May, a new report has revealed. According to US-based consulting firm Challenger, Gray & Christmas monthly report, employers in the US cited AI as the reason for 3,900 layoffs, which is about 4.9 per cent of May’s job cuts.
In May, US-based employers announced 80,089 cutbacks, a 20 percent increase from the 66,995 cutbacks announced a month earlier, and 287 percent more than the 20,712 cutbacks announced in the same month in 2022.
Andrew Challenger, labor expert and senior vice president at Challenger, Gray & Christmas, said, “Consumer confidence has hit a six-month low and job opportunities are shrinking. Companies are putting the brakes on hiring in fear of a recession.” ,
Furthermore, the report states that companies have announced plans to cut 4,17,500 jobs so far this year, which is 315 per cent higher than the 1,00,694 cuts announced in the same period last year.
This is the highest January-May total since 2020 when 1,414,828 deductions were recorded.
The technology sector announced the highest number of cutbacks in May with 22,887, taking the total to 136,831 this year, which is 2,939 per cent higher than the 4,503 cutbacks announced in the same period last year.
Retailers announced the second highest number of cuts in May with 9,053. The report said that retail has announced 45,168 cutbacks so far this year, which is 942 per cent higher than the 4,335 per cent announced till May 2022.
The automotive sector announced 8,308 job cuts last month for a total of 18,017, which is 235 per cent higher than the 5,380 cuts announced in the same period last year.
Financial firms have announced 36,937 cutbacks through May, up 320 percent from 8,788 cutbacks during the same period in 2022.