- The layoffs of the technological sector increased from 98,000 (3.9%) to 152,000 (5.7%) in just one month
- Software development and white collar work could be more at risk
- The roles in person and experts are still competitive
New Wall Street Journal The reports have revealed an alarming trend within the technological sector, as well as the anticipated skeptics years ago, artificial intelligence seems to be displacing human workers and leading to higher unemployment rates.
The report found that the unemployment rates of the IT sector increased from 3.9% in December to 5.7% in January, or from 98,000 to 152,000 Janco Associates analysis of the data department of the United States Labor Department.
In more general terms, 143,000 new jobs were added in January 2025 to the US economy, although at a slower than optimal pace.
Ai is costing you
In fact, white collar and knowledge workers are seen as the most at risk when it comes to AI -induced labor displacement. The CEO of Jaco Associates, Victor Janulaitis, commented: “The works are being eliminated within the function of IT that are routine and mundane, such as reports, clerical administration.”
Companies are also reducing their dependence on programmers and system designers in the hope that artificial intelligence can offer greater cost savings. The number of software development work publications fell 8.5% year after year in January 2025.
Although last year’s pattern was considerably lower than 2023, when layoffs. Fyi tracked 264,000 layoffs of the technological sector, since it is estimated that 152,000 technological workers still lost their jobs in 2024, almost as many as the 165,000 workers who lost their jobs in 2022.
Recent notable employment losses include Sonos (12% of their staff), goal (5%), Microsoft, Amazon and Google.
The report also suggests that a greater corporate investment in artificial intelligence could serve as an early sign that future employment cuts could reach a trend described as “cost avoidance.”
However, although certain works may be at risk, others remain in high demand. The report reveals that certain roles in person and qualified have a greater demand than many white collar positions: the ‘in person’ element of that trend is particularly interesting, given the mandates back to the generalized office that have been promulgated. -pandemic.
However, not all are bad news: Janulaitis revealed that January figures, which paint a negative image for next year, could be artificially inflated by many companies that seek to implement the cost reduction measures of this year now, in place later.
Anyway, with another 10,800 employment cuts acted in the first five weeks of 2025 throughout the industry, many workers face an uncertain future.
