A new report from Challenger, Gray & Christmas has found that nearly 4,000 people in the United States lost their jobs in May due to Artificial Intelligence (AI). This is the highest number of job losses due to AI since the firm began tracking this data in 2017.
The report found that AI was the reason for 4.9% of all job cuts in May. The most common industries affected by AI layoffs were manufacturing (1,400 jobs), transportation and warehousing (700 jobs), and professional and business services (600 jobs).
The report’s author, Andrew Challenger, said that the rise of AI is a “double-edged sword.” On the one hand, AI is creating new jobs in areas such as data science and software development. On the other hand, it is also displacing workers in some traditional industries.
“As AI continues to evolve, we will likely see more job losses in certain industries,” Challenger said. “However, we will also see new jobs created in other industries. The key will be for workers to be prepared for the changing job market.”
The report comes at a time when the US economy is facing a number of challenges, including rising inflation and a potential recession. Challenger said that the job market is likely to remain volatile in the coming months.
“The job market is going to be bumpy in the months ahead,” Challenger said. “We could see more job losses in some industries, but we could also see more job gains in others.”
The report’s findings highlight the need for workers to be prepared for the changing job market. Workers should be upskilling and reskilling to keep their skills relevant in the face of AI-driven change. They should also be prepared to move to new industries where there are new job opportunities.
The rise of AI is a major disruption to the job market. However, it is also an opportunity for workers who are willing to adapt and change. By upskilling and reskilling, workers can position themselves for success in the AI-driven economy.