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Study Finds AI Layoffs Backfire as Productivity Gains Fail to Materialize

NewsData.io · United States · Aug 26, 2026

New NBER research reveals that over 90% of executives surveyed reported AI had no impact on employment, and 89% saw no improvement in labor productivity — yet layoffs tied to AI adoption continue. University of Pittsburgh professor Mark Ma warns that AI-driven workforce cuts are undermining the very conditions needed for AI to boost efficiency, as employee anti-AI sentiment directly correlates with lower firm productivity. Market data reinforces the finding: layoff announcements linked to AI generated near-zero average investor returns. For staffing agencies, the research signals that client-side AI-driven headcount reductions may not sustain long-term workforce reductions, and employer demand for skilled, AI-receptive talent could remain strong.

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