Overview

• Outplacement firm Challenger, Gray & Christmas reports over 10,000 U.S. job cuts tied directly to generative AI and more than 806,000 total layoffs so far in 2025, the highest year-to-date figure since 2020
• Entry-level job postings have declined 15% year-over-year and the unemployment rate for recent college graduates has climbed to about 6% as companies automate tasks once handled by junior staff
• Corporate executives are increasingly attributing cuts to AI as a means to boost revenue per employee and fund further automation
• Goldman Sachs and JP Morgan economists say current AI-driven disruption remains modest but warn that a recession could trigger far larger workforce displacements
• Research indicates consumers have realized around $97 billion in welfare gains from generative AI even as corporate AI revenues remain relatively low, underscoring a gap in the technology’s economic impact