Unemployment in the Tech Sector Reaches New High Amid Growing Threat of Artificial Intelligence.
According to a report, artificial intelligence is causing layoffs in the tech sector.
A recent report has highlighted a concerning trend in the technology sector, where unemployment has notably risen. According to an analysis conducted by Janco Associates, based on data from the U.S. Department of Labor, the unemployment rate in the IT sector increased from 3.9% in December to 5.7% in January, translating to a rise from 98,000 to 152,000 unemployed workers in just one month.
Although 143,000 new jobs were added to the U.S. economy in January 2025, the pace of job creation remains below ideal levels. Artificial intelligence has begun to play a vital role in this situation, as white-collar occupations and knowledge workers are considered among the most vulnerable to job displacement caused by AI. Victor Janulaitis, CEO of Janco Associates, noted that roles within IT that are routine and mundane, such as report generation and clerical administration, are being eliminated.
Companies are opting to reduce their reliance on programmers and system designers, counting on AI to generate additional savings. In this context, the number of job openings in software development decreased by 8.5% compared to the previous year.
Although layoffs in the tech sector were significantly lower than in 2023, when 264,000 were recorded, it is estimated that 152,000 tech workers lost their jobs in 2024, nearly matching the numbers from 2022. Notable losses include those from Sonos (12% of its workforce), Meta (5%), as well as significant cuts at Microsoft, Amazon, and Google.
The report also warns that increased corporate investment in artificial intelligence could foreshadow future job cuts, a phenomenon known as “cost avoidance.” However, despite certain jobs being at risk, there are other occupations in high demand. Roles that require specific skills and are performed in-person are particularly sought after, indicating a renewed interest in office work following the pandemic.
Despite the discouraging outlook presented by the January figures, Janulaitis suggested that they could be artificially inflated due to many companies implementing cost-cutting measures early. With over 10,800 layoffs in the first five weeks of 2025, many workers are facing an uncertain future.
