AI-driven job cuts in the US result in $8.5 billion in annual wage losses

Recent data highlights the economic and structural impact of artificial intelligence on the United States workforce. According to the Center for AI Safety’s Wage Loss Dashboard, AI-driven workforce reductions have resulted in over 117,000 job cuts this year, leading to an estimated $8.5 billion in annual wage losses. This averages to a loss of approximately $25 per person nationwide. The economic impact varies by state; California has seen over 27,000 AI-attributed layoffs, resulting in an estimated $56 annual wage loss per resident, while Alaska has seen 138 such losses, totaling $14 per person.

Complementary research from Bullhorn and the American Staffing Association examines how AI affects specific job categories. Since January 2023, roles most exposed to AI, such as customer service representatives and data entry keyers, have seen a decline of 17% to 18%. In contrast, roles less affected by automation, such as mechanics and truck drivers, have declined by roughly 13%. While the data shows a gradual shift in the types of jobs being filled, researchers note that the overall change in the job mix remains modest rather than indicating widespread, sudden job losses.