AI-Driven Layoffs Surge Amid Record Retraining Efforts: New York Fed Study Reveals Stark Contrast

Breaking News: AI-Driven Layoffs on the Rise, but Retraining Efforts Surge A new survey from the New York Fed reveals a stark contrast between AI-driven layoffs and retraining efforts in service companies. While just 1 firm reported layoffs last year, 13 expect them in the coming months. According to the survey, among service companies in the New York-northern New Jersey region that have already deployed AI, 35 said they are retraining their workers, up from 24 last year. This represents a significant increase in efforts to upskill and reskill employees for an AI-driven future. Over the next six months, nearly half of these companies plan to do so. The survey also found that more than a third of service companies using AI are already retraining their workers, with a further 13 planning to do so over the coming months. In contrast, just 1 firm reported layoffs last year, but 13 expect them in the next six months. Immediate Impact and Response As AI continues to transform industries, these findings highlight the urgent need for companies to invest in retraining programs. While some may view AI-driven layoffs as inevitable, the New York Fed's survey suggests that a more proactive approach can mitigate job losses. Background Context The increasing adoption of AI in service companies has sparked concerns about job displacement and the future of work. However, this latest survey offers a glimmer of hope for workers and policymakers alike. By prioritizing retraining and upskilling programs, companies can not only reduce layoffs but also foster a more adaptable workforce. What Happens Next As AI continues to evolve, it's essential that companies prioritize retraining efforts to ensure a smooth transition for employees. Policymakers must also take note of these findings and consider implementing policies to support workers in an AI-driven economy. The New York Fed's survey serves as a timely reminder of the need for proactive measures to address the impact of AI on employment. Sources: AILayoffs Jason Ma, Weekend Editor at Fortune *This story is developing. Information compiled from Fortune reporting.*