Fact Check Team: Is AI replacing American workers and how hard is it to find a new job?
SAN FRANCISCO – OCTOBER 20: A protester reaches a sign that reads “Freeze AI N” during a march to Open AI headquarters on October 20, 2026 in San Francisco, California. One of the protest groups, Irreplaceable, organized protests across the United States as part of a day of national walkouts, calling for a freeze on AI development. (Photo by Heather Diehl/
WASHINGTON (TNND) —Artificial intelligence is transforming the American workplace, but it’s also raising a difficult question: Are companies replacing workers with technology, and what happens to the people whose jobs disappear?
A recent report from The New York Times examines how companies are restructuring their operations around artificial intelligence as they invest more heavily in the technology.
While there is no definitive count of how many Americans have lost their jobs specifically because of AI, research suggests the technology is already affecting employment opportunities. And for workers in occupations most exposed to automation, finding a new job may be getting harder.
How many jobs are actually being lost to AI?
It’s difficult to separate AI-related layoffs from broader corporate restructuring, cost-cutting and other economic pressures.
PASADENA, CALIFORNIA – MARCH 06: A “Now Hiring” sign is posted in a shop on March 6, 2026 in Pasadena, California. According to the Bureau of Labor Statistics, the U.S. economy lost 92,000 jobs in February while the unemployment rate ticked up to 4.4 percent. (Photo by Mario Tama/
In October, Microsoft offered voluntary buyouts to approximately 60,000 eligible employees as the company works to control costs and finance its growing artificial intelligence investments. However, that does not mean all those positions are being eliminated because of AI.
Reuters reported on Microsoft’s buyout program.
Research from Goldman Sachs offers another indication of AI’s growing influence on employment. The firm estimates artificial intelligence reduced U.S. monthly payroll growth by approximately 16,000 jobs over the past year and increased the unemployment rate by 0.1 percentage point.
That figure represents an estimated net drag on job growth, not a count of jobs directly eliminated by AI.Goldman Sachsalso found that AI is creating employment opportunities in some occupations where the technology complements human workers.
Workers displaced by AI are taking longer to find jobs
The impact mayextend beyond the initial job loss.
A Goldman Sachs analysis of more than 15,000 workers who lost their jobs between 2016 and 2025 found that workers most likely to have been displaced by AI took approximately one month longer to find new employment than other laid-off workers.
They were also about 10 percentage points more likely to remain unemployed a year after losing their jobs.
The findings suggest that workers whose skills become less relevant as technology advances may face a more difficult transition into new careers.
Younger workers face a growing challenge
One of the biggest concerns is how artificial intelligence could affect younger Americans entering the workforce.
A recent study from theFederal Reserve Bank of Cleveland found unemployment has increased more in occupations with greater exposure to AI since generative AI tools became widely available in late 2022.
The researchers found the difference was particularly pronounced among workers ages 23 to 30.
Importantly, the study did not find consistent evidence that workers in AI-exposed occupations were losing their existing jobs at higher rates. Instead, the research suggests they are having more difficulty finding new employment.
Among occupations with the highest AI exposure, job-finding rates declined approximately six percentage points more than in occupations with the lowest exposure. The researchers estimated that this difference could increase average unemployment duration from about 10.5 weeks to more than 13 weeks.
The findings raise concerns about entry-level opportunities, particularly as companies automate routine tasks that have traditionally given younger workers a foothold in their careers.
Recent college graduates are also facing a challenging labor market. According to the Federal Reserve Bank of New York, their unemployment rate was 5.2% in the third quarter of 2026. The underemployment rate, measuring graduates working in jobs that typically do not require a college degree, reached 42.5%.
Those figures do not establish that AI is responsible for the difficulties facing new graduates, but they illustrate the challenges young workers are navigating.
Can new AI jobs replace the ones being eliminated?
The long-term impact of artificial intelligence on employment remains uncertain.
AI can automate certain tasks, but it can also increase productivity, create demand for new skills and generate entirely new types of jobs.
Goldman Sachs estimates approximately 6% to 7% of U.S. workers could eventually be displaced by AI over the next decade. However, the firm also notes that technological advances can create new employment opportunities that offset some of those losses.
The challenge is making sure those opportunities emerge quickly enough for displaced workers to transition into new roles.
For now, the research points to an important distinction: AI may not be triggering widespread layoffs across the economy, but it is already changing who gets hired, which skills employers value and how difficult it can be to find work.
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