Tech workers who regularly use artificial intelligence tools are far less likely to be laid off compared to colleagues who use AI less frequently, Bloomberg reports, citing new Gallup research. It puts the layoff risk for infrequent users at 18%, tripling the 6% layoff risk for frequent users. Earlier this year, researchers tracked how often 23,000 employed and displaced workers used AI, then factored in AI fluency and layoff probabilities in tech and non-tech industries. The risk disparity underscores the importance of embracing AI across fields, but particularly in tech.
Gallup says US workers continue to report Downsizing, but AI is not the primary driver (<1%).
AI's biggest employment killer - AgenticAI - is only now coming out of the box. By 2027, this will likely become the #1 source of employment decline
Key points from this article.
1. Workforce downsizing remains elevated — About 21% of U.S. employees say their employer is reducing staff, a rate that has held steady in early 2026 after nearly tripling from mid‑2022 to late‑2025.
2. Hiring still outpaces layoffs — Despite downsizing, 34% of workers report their employer is hiring, and national data show 5.5 million hires vs. 1.9 million layoffs in March 2026.
3. Most workers see no staffing change — 45% report stable workforce levels, a shift from 2022–2023 when hiring was the dominant trend.
4. Federal workers report the highest layoffs — 38% of federal employees say their organization is cutting staff, far higher than state/local government (19%), for‑profit (17%), or nonprofit (18%) workers.
5. Tech and fully remote workers are disproportionately affected — Among unemployed adults laid off:
💠13% previously worked in tech (vs. 6% share in the employed workforce)
💠25% previously worked fully remotely (vs. 13% among employed adults)
💠This indicates higher layoff rates in these groups.
6. Most roles perceive staffing similarly — Roughly 3 in 10 employees across leaders, managers, and individual contributors say their organization is expanding. Individual contributors are more likely to be unsure about staffing changes.
7. AI is not a major driver of layoffs — Only 1% of laid‑off workers cite AI as the primary reason for losing their job.
Got a difficult boss, or a problematic coworker? Soon enough, your company could be using AI to sniff out instances of office bullying. There's a growing cohort of firms offering software that can "uncover hidden intent" in workplace interactions — "even when it's subtle," promises Smarsh, a platform that counts Morgan Stanley among its users. AI can pick up on tone and patterns in a way previous generations of employee-surveillance software couldn't, giving employers a chance to "identify problematic managers before trouble emerges," per Bloomberg.
⛽ Some good news at the pump: gas prices just dropped below $4 a gallon for the first time since late March!
The dip comes as the tentative U.S.-Iran peace deal pushes oil prices down and ships start moving through the Strait of Hormuz again. Crude oil has fallen from over $100 per barrel just weeks ago to under $80 per barrel.
But don't celebrate too hard yet — drivers are still paying about $1 more per gallon than before the war, and prices are still 25% higher than this time last year. If you're in California or Hawaii, you're looking at over $5.50/gallon, while folks in Texas and Indiana are paying closer to $3.40-3.50.
Experts say it could take months for these savings to fully reach your wallet, and other costs (groceries, airfare) may keep climbing into the fall. Still, any relief helps. 💸
The number of Americans applying for unemployment benefits fell modestly last week, signaling that layoffs remain at historically low levels despite broader economic headwinds.
According to a Labor Department report released Thursday, U.S. applications for jobless aid dropped by 4,000 to 226,000 for the week ending June 13. This aligned closely with the 225,000 new applications projected by FactSet analysts. Weekly jobless claims are widely viewed as a proxy for layoffs and a real-time health indicator of the U.S. job market.
Labor Market Resilience Amid Regional Conflict
Despite fears that Middle East geopolitical tensions would severely impact a slowing labor market, hiring has actually gained momentum in recent months.
The 2025 Slump: Last year saw a miserable performance with fewer than 200,000 total job gains (compared to roughly 1.5 million jobs added in 2024).
Recent Rebound: Employers unexpectedly added 172,000 jobs in May. Over the three months since the conflict began in late February, the economy has averaged 188,000 job gains per month—the strongest three-month hiring stretch since early 2024.
Key Indicators: The national unemployment rate remains historically low at 4.3%, and April job openings rebounded to 7.6 million vacancies (up from 6.9 million in March), marking the highest vacancy level since mid-2024.
Inflation and the Federal Reserve's Next Move
While hiring remains steady, consumer prices continue to pressure the economy. Rising gas prices—driven by the closure of the Strait of Hormuz—pushed U.S. consumer inflation to 4.2% in May, its highest level in three years. Though a recent diplomatic agreement aims to end the war and reopen the Strait for unrestricted oil sales, energy costs remain elevated.
With inflation sitting well above the Federal Reserve's 2% target, the central bank held its benchmark interest rate steady on Wednesday. This marked the first meeting under newly appointed Fed Chair Kevin Warsh, who succeeded Jerome Powell.
The Fed's Dilemma: While lower interest rates stimulate hiring, they risk fueling inflation. Consequently, several Fed policymakers have signaled they are open to implementing at least one interest rate hike later this year to curb rising prices, even if higher borrowing costs discourage corporate hiring.
Emerging Headwinds and Corporate Layoffs
While weekly jobless claims have largely stabilized between 200,000 and 250,000 since the post-pandemic recovery, the broader labor market has faced a multi-year cooling trend. Hiring began tapering two years ago, exacerbated in 2025 by new tariffs, a purge of the federal workforce, and prolonged high interest rates.
Furthermore, massive investments in artificial intelligence have introduced long-term uncertainty, as businesses weigh the high costs of AI development against its potential to automate or alter traditional roles. Major corporations adjusting their headcounts recently include Verizon, UPS, Amazon, Disney, Starbucks, and Walmart.
Key Data Points at a Glance
| Metric | Current Figure | Change / Context |
| Weekly Jobless Claims | 226,000 | Decreased by 4,000 |
| 4-Week Moving Average | 223,250 | Increased by 4,000 |
| Continuing Claims (Week Ending June 6) | 1.81 million | Increased by 24,000 |
| May Job Gains | 172,000 | Better than expected |
| U.S. Inflation Rate (May) | 4.2% | Three-year high |