Particle.news
Download on the App Store
3 ARTICLES
·
last wk.

New York Fed: AI Uptake Jumps as Layoffs Stay Rare, Hiring Pullbacks Loom

The district survey emphasizes retraining for existing staff, with early pressure showing up in college-degree roles.

Artificial Intelligence words are seen in this illustration taken March 31, 2023. REUTERS/Dado Ruvic/Illustration/ File Photo
Image

Overview

  • AI use expanded sharply over the past year, with 40% of services firms reporting usage (up from 25%) and 26% of manufacturers doing so (up from 16%), and many plan further adoption within six months.
  • Hiring reductions tied to AI are emerging unevenly: 12% of AI-using service firms hired fewer workers and 23% expect to slow hiring, while no manufacturers reported recent cutbacks but 10% expect to pare hiring.
  • Layoffs remain uncommon, with just 1% of AI-using service firms reporting job cuts in the past six months and 13% expecting layoffs ahead, a caution echoed last year that largely did not materialize.
  • Retraining is more prevalent than displacement, as about one-third of service firms and 14% of manufacturers have retrained workers, nearly half expect to retrain soon, and some are hiring for AI-focused roles.
  • The pullback in hiring is concentrated in jobs requiring a college degree, and separate analyses cited in the coverage point to tougher conditions for recent graduates and entry-level tech workers over the past few years.