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2 posts on "layoffs"
September 4, 2025

Are Businesses Scaling Back Hiring Due to AI?

Ben Hyman, Jaison R. Abel, Natalia Emanuel, Nick Montalbano, and Richard Deitz

Generative AI virtual assistant tools for prompt engineer and user for ease of engage artificial intelligence AI technology help people to work with generative AI functions by prompting the AI snugly

The swift advancement of artificial intelligence (AI) has sparked significant concern that this new technology will replace jobs and stifle hiring. To explore the effects of AI on employment, our August regional business surveys asked firms about their adoption of AI and if they had made any corresponding adjustments to their workforces. Businesses reported a notable increase in AI use over the past year, yet very few firms reported AI-induced layoffs. Indeed, for those already employed, our results indicate AI is more likely to result in retraining than job loss, similar to our findings from last year. That said, AI is influencing recruiting, with some firms scaling back hiring due to AI and some firms adding workers proficient in its use. Looking ahead, however, layoffs and reductions in hiring plans due to AI use are expected to increase, especially for workers with a college degree.   

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Posted at 10:00 am in Labor Market, New Jersey, New York, Regional Analysis | Permalink | Comments (0)
April 16, 2020

New York Fed Surveys: Business Activity in the Region Sees Historic Plunge in April

Jaison R. Abel, Jason Bram, and Richard Deitz

Indicators of regional business activity plunged to historic lows in early April, as efforts to slow the spread of the coronavirus kept many people at home and shut down large parts of the regional economy, according to the Federal Reserve Bank of New York’s two business surveys. The headline index for both surveys plummeted to nearly -80, well below any historical precedent including the depths of the Great Recession. About 60 percent of service firms and more than half of manufacturers reported at least a partial shutdown of their operations thus far. Layoffs were widespread, with half of all businesses surveyed reporting lower employment levels in early April.

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Posted at 8:31 am in Employment, Pandemic, Regional Analysis | Permalink

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