"Companies using AI are rushing to retrain their workers for now, though the share that plan layoffs or trim hiring is expected to rise in the coming months, according to a new survey from the New York Fed. Among service companies in the New York-northern New Jersey region that have already deployed AI, 35% said they are retraining their workers, up from 24% last year. And over the next six months, that share is expected to jump to 47%."
"But layoffs are coming: 13% of service companies are planning them in the next six months, up from just 1% this year and 10% last year. And 23% expect to hire fewer workers, nearly doubling from 12% this year. By contrast, 12% plan to hire more, little changed from 11% this year. "Interestingly, the reduction in hiring due to AI was concentrated among jobs that require a college degree," the New York Fed said on Thursday."
A New York Fed survey of firms in the New York-northern New Jersey region finds rising retraining among companies that have deployed AI, with 35% of service firms retraining now and 47% expected to do so within six months. Manufacturing firms show similar or larger planned retraining. Planned layoffs among service firms are forecast to rise to 13% in the next six months, and 23% expect to hire fewer workers. Reductions in hiring are concentrated among jobs requiring a college degree, potentially worsening job prospects for recent college graduates. Manufacturing hiring shows modest improvement.
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