The AI layoffs may have finally ended, and businesses might be hiring more workers just to be able to use AI effectively

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  • Just 4% of service firms have laid off workers in the past six months due to AI
  • "Existing workers are much more likely to be retrained than replaced"
  • Some companies are still hiring fewer employees than they would have

Just a few years ago, multiple companies every day were announcing AI-related layoffs amid purported efficiency gains. And that came straight after years of post-pandemic layoffs driven by earlier overhiring.

The latest data finally implies that AI-related layoffs aren't so common anymore as companies get to grips with AI and hire new workers to help them find a direction.

According to recent New York Fed data, only 4% of AI-using service firms reported laying off workers as a result of AI in the past six months, with no manufacturers reporting AI-related layoffs in all of 2025 and 2026.

Are companies finally hiring because of AI?

On the flip side, around 13%...

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