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Generative AI Is Reordering Tech Jobs, Even as Economists Urge Caution

A bipartisan proposal would require employers to report AI-related layoffs to the Labor Department.

Overview

  • An MIT analysis estimates current AI systems could perform tasks equal to roughly 12% of U.S. labor, representing up to $1.2 trillion in wages.
  • U.S. Bureau of Labor Statistics data show programmer employment fell about 27.5% from 2023 to 2025, while software developers were essentially flat and roles like information security analyst and AI engineer grew.
  • Entry-level hiring at the 15 largest tech firms declined 25% from 2023 to 2024, as a NACE survey found 61% of employers are not replacing early-career roles with AI and many plan to augment them over the next five years.
  • Sens. Josh Hawley and Mark Warner have introduced a bill requiring quarterly reports to the Department of Labor on layoffs attributed to artificial intelligence.
  • Yale Budget Lab’s Martha Gimbel says there is little evidence so far of broad, economy-wide job losses from AI, and that any disruption is likely to unfold gradually.