US Layoffs Haven’t Increased, and New Tech Industry Hiring Balances Firings

“The numbers show that layoffs in the U.S. are roughly at or below levels from before the pandemic,” reports the Washington Post, “although they are higher than in 2022 when businesses snapped up workers as the economy roared back to life…

“A different measure that accounts for the growing U.S. workforce shows that layoffs affected about 1.2% of employed people in March, a number that has been steady for years outside of the pandemic…”

In the technology industry, where Meta and other companies are regularly announcing job cuts, the layoff picture is complex. There has been a marked increase in layoffs in recent months in what the Labor Department calls the information industry, which includes employment of software developers and other tech workers. But Matthew Martin, senior U.S. economist at the research and consulting firm Oxford Economics, noted that hiring has also increased in that category, which includes media and entertainment. The combination of hiring minus layoffs in the information industry is effectively a wash, Martin said. Layoffs at Big Tech companies like Meta and other high-profile employers don’t necessarily reflect what is happening in the country, Martin said, and draw far more attention than what may be slow and steady workforce growth. “There’s a lot more headlines about job cuts than there are [about] expansion plans by businesses,” he said.

In his view, technology companies may be pushing out some workers and replacing them with people who have different skills as they respond to the demands of AI. It’s true that businesses in some industries are devoting enormous sums of money and attention to AI. It’s changing how some people work and a minority of American businesses are rolling out AI tools. But it’s also become a trend for bosses to blame layoffs on the productive capabilities of AI and its ability to replace workers, even when job cuts may have little to do with the technology. Sam Altman, CEO of ChatGPT-maker OpenAI, has taken note of the pattern that he and others call “AI washing,” essentially a high-tech form of whitewashing… “You know something is happening all the time when they have a word for it,” said Gautam Mukunda, who teaches leadership at the Yale School of Management…

AI-related employment changes are tiny so far, said Nathan Goldschlag, director of research at the Economic Innovation Group, a Washington think tank. He pointed to a recently published analysis of Census Bureau surveys, which found more than 95 percent of businesses that use AI said it hasn’t changed their staff sizes — and AI-related employment increases were more common than decreases.

Read more of this story at Slashdot.

المصدر: Slashdot