AI Cited in 112,000+ U.S. Job Cuts Through July, But Hiring Also Up 25%

NewsData.io · United States · Aug 31, 2026

Companies across the U.S. economy attributed 112,713 job cuts through July to AI — roughly 24% of all layoffs — according to Challenger, Gray & Christmas. However, overall layoffs fell 41% year-over-year and hiring increased 25%, suggesting AI is reshaping the labor market rather than dismantling it. U.S. AI investment is on track to hit nearly $600 billion this year, with Goldman Sachs analysis indicating the technology's GDP impact and crowding-out effects are smaller than widely assumed. For staffing firms, the data reinforces that AI-driven displacement is real but selective, and that hiring demand remains elevated relative to last year.