"It's an agonizing time for the labor market in the US, where unemployment is on the rise and wages are stagnant. Though there's raging debate over what degree of blame AI holds for the sorry state of the job market, one thing's for sure:workers are growing increasingly furious with the tech, which they perceive as undercutting what little job security they had."
"Her anxious comments come after a year of dramatic layoffs and hiring slowdowns, in which major firms have often pointed at AI. Salesforce CEO Mark Benioff, for example, said in September that he'd cut 4,000 customer support jobs because he "needs less heads" thanks to automation. In October, Amazon initiated its largest round of layoffs ever, slashing 14,000 office jobs while citing AI as a major factor."
"At the World Monetary Fund summit at Davos, for instance, International Monetary Fund managing director Kristalina Georgieva launched into a talk on AI by calling it a "major factor for economic growth." "We see potential to up of 0.8 percent boost to growth over the next years, but it is hitting the labor market like a tsunami, and most countries and most businesses are not prepared for it," she fretted."
Unemployment is rising and wages remain stagnant while debate intensifies over AI's role in job losses. Workers increasingly view AI as undermining job security and are growing furious. Business leaders praise AI's economic growth potential but worry about public backlash. IMF managing director Kristalina Georgieva warned of AI boosting growth yet hitting labor markets like a tsunami, with many unprepared. Major firms have cited AI in layoffs, including cuts at Salesforce and Amazon. Mercer research shows shop-floor fears of AI-related job loss rose from 28% in 2024 to 40% in 2026, and 62% of employees say leaders underestimate AI's psychological impact.
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