"There's no question that the job market is a mess. According to Labor Department data, nearly two million Americans have been without a job for 27 weeks or more, the highest figure since 2022. And it's hitting white collar jobs hard: this week alone,Amazon cut its corporate workforce by 14,000 jobs, UPS cut 34,000 operational workforce positions, and Target and Paramount axed1,800 and 1,000 jobs, respectively."
"Many are blaming those cuts on AI. Everyone from Senator Bernie Sanders to Federal Reserve chair Jerome Powell is wringing their hands about the tech's effect on employment.Mike Hoffman, CEO of growth advisory firm SBI, told the Wall Street Journal that productivity surged when he cut his software development team by 80 percent. And Meta just culled 600 employeesfrom the AI Superintelligence lab - after dropping billions to beef up the team - and blamed advancements in automation."
"Others aren't so sure. New research found that even the world's strongest AI agents struggled to perform the vast majority of tasks thatcompanies currently lean on independent contractors for. According to a recent study from MIT, 95 percent of companies that adopt AI see zero meaningful revenue growth. Some companies are finding they're forced to hire contractors to fix AI's mistakes, or even to re-hire staff they terminated in favor of the tech."
U.S. joblessness has risen, with nearly two million people unemployed 27 weeks or more and major firms cutting thousands of positions. White-collar and operational roles at Amazon, UPS, Target, and Paramount faced significant reductions. Many industry and political figures attribute cuts to AI and automation, citing productivity claims and corporate restructuring. Research shows advanced AI still struggles with most tasks contractors perform, and 95 percent of adopting companies report no meaningful revenue growth. Some firms hire contractors to fix AI errors or rehire laid-off staff. Political uncertainty and policy shifts also weigh on employer decisions.
Read at Futurism
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