Nearly 4,000 people in the US lost their jobs last month due to AI: Report

As the artificial intelligence wave gains momentum, around 3,900 people were laid off in May because of technological advances. According to a monthly report from Challenger, Gray & Christmas, US-based employers announced 80,089 cuts in May - up 287% from the same month in 2022. And for the first time, AI featured right alongside typical reasons such as market conditions, restructuring, and buyouts.

3,900 people lost their jobs due to AI in May - the first time such an instance has been recorded. The AI affected group made up roughly 4.9% of May's job cuts at a time when year to date hiring has also reached its lowest level since 2016. According to the report, around 417,500 jobs were lost between January and May this year - the worst start to a year since 2020 when the COVID-19 pandemic triggered mass layoffs. 

The report also came mere days after scientists and tech industry leaders warned that artificial intelligence would raise the risk of human extinction.

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According to data released earlier in the week, US job growth accelerated in May. But a surge in the unemployment rate to a seven-month high of 3.7% suggested that labor market conditions were easing, which could give the Federal Reserve cover to skip an interest rate hike this month. The increase in the unemployment rate from a 53-year low of 3.4% in April, which was reported by the Labor Department on Friday, was the largest since April 2020.

(With inputs from agencies)