AI-Driven Automation Fuels IT Job Cuts as Companies Embrace Cost Avoidance Strategies

Benzinga

U.S. IT sector unemployment rose by 1.8% from December to January, hitting 5.7%, outpacing the overall U.S. jobless rate of 4%. AI-driven job losses in tech stem from increased spending on AI infrastructure without corresponding IT job creation. Companies increasingly use AI to automate tasks instead of hiring new workers, a strategy tech leaders call cost avoidance. White-collar unemployment is at its highest since 2020, as demand for knowledge-based jobs lags behind in-person skilled labor roles.

Transcript

00:00It's Benzinga bringing Wall Street to Main Street.

00:02U.S. IT sector unemployment rose by 1.8% from December to January, hitting 5.7%,

00:08outpacing the overall U.S. jobless rate of 4%. AI-driven jobs and tech stem from increased

00:13spending on AI infrastructure without corresponding IT jobs creation. Companies

00:17are increasingly using AI to automate tasks instead of hiring new workers,

00:21a strategy tech leaders call cost-cutting avoidance. White-collared unemployment is

00:26at its highest since 2020, as demand for knowledge-based jobs lags behind in-person

00:31skilled labor roles. For all things money, visit Benzinga.com slash GSTV.

Category

Transcript

Comments

Recommended