Don’t blame a job market slowdown that many economists say will start to become evident in Friday’s May employment report solely on uncertainty surrounding President Donald Trump’s tariffs.
You can also point the finger at AI.
AI, or artificial intelligence, is increasingly prompting technology companies to hire fewer recent college graduates and lay off more employees, according to economists and staffing firms.
The rising U.S. unemployment rate the past couple of years can partly be pinned on a hiring slowdown in technology that has largely affected recent college grads seeking the kind of entry-level jobs being replaced by AI, according to a recent report by Oxford Economics.
Trump’s tariffs, which are expected to reignite inflation while dampening consumer spending, will likely intensify the hiring pullback, said Oxford Senior Economist Matthew Martin.
