While it’s debatable whether AI will lead to mass unemployment in the future, it’s already starting to leave its mark on U.S. employment data. Government data shows that the pace of employment decline in financial activities and information industries has accelerated to an average of 28,000 jobs per month in 2026. These two industries are also the areas where AI is popularizing the fastest.
This contrasts with the overall strong performance of the labor market. This year through May, more than 113,000 jobs were added each month - a number that would have been higher if the banking and technology industries hadn't been holding back. June employment data due out on Thursday is expected to show solid growth again.
After investing heavily in AI, technology companies are increasingly laying off workers on the grounds of AI. Executives at JPMorgan Chase, Citigroup and Goldman Sachs have also said that AI will replace some jobs.
“AI is having an impact that no technology has ever had before,” said John Challenger, CEO of Challenger, Gray & Christmas. The company, which tracks layoff plans, found that among the layoffs announced so far this year, AI-related layoffs have reached nearly 102,000.
Overall, the tech sector accounts for one-third of all job cuts announced in 2026. "Finance is probably the next big industry to be affected the most," Challenger said.