US AI-linked layoffs surge to record, Mexico employer count falls sharply

In May 2026, U.S. companies reported 97,006 job cuts, the highest monthly total since 2020 and a 16% rise from April. Artificial intelligence was cited as the primary reason for 38,579 of those dismissals, accounting for 40% of the month's layoffs and setting a new record for AI‑related terminations.

At the same time, Mexico's Instituto Mexicano del Seguro Social (IMSS) recorded a loss of 26,393 registered employers in May compared with the same month a year earlier, a 2.5% annual decline. The employer registry dropped by 3,231 firms from April, extending a streak of monthly reductions to 25 months. Formal jobs linked to the IMSS fell by 29,922 positions in May, reflecting sectoral adjustments and the removal of fraudulent employer records.