"Pouring Money into AI, but Not Hiring People"... 'Employment Freeze' Hits the U.S. West Coast

AI Investment Rises, But Hiring Slows
Ongoing Layoffs in the US Tech Sector

While corporate investment is surging in the western United States—the epicenter of the artificial intelligence (AI) industry—tech sector hiring has, paradoxically, ground to a halt. Major western states, including California, Oregon, and Washington, have reported some of the highest unemployment rates in the nation.

Photo is not related to specific content of the article. Pixabay

"Hiring declines as AI adoption spreads"... Even highly-educated tech workers face job shortages

On August 8 (local time), CNN reported, citing data from the U.S. Bureau of Labor Statistics, that in June, the unemployment rate in California, Oregon, and Washington each stood at 5.2%. Washington, D.C. posted the highest rate at 6%, followed by California, Oregon, and Washington, which were tied with Connecticut.

In particular, employment in California's information sector in April reached its lowest level in six years. Compared to its peak in November 2022, it is down by 11%.

The main background cited for this trend is that as AI adoption expands, companies are cutting back on hiring new workers.

Laura Ulrich, chief economist at Indeed, told CNN, "As AI technology advances and companies leverage it, there’s less need to hire as many software developers or data analysts as before."

Even highly-educated individuals with AI-related skills are struggling to find jobs.

Ben Hyman, an economist at UCLA, noted, "There has been an increase in unemployment benefit claims among highly-educated workers who were employed in positions heavily impacted by AI."

Juan Luis, who spent over a decade in managerial positions in the tech industry, has been searching for a new job since October 2024. He said, "I've applied to hundreds of places, but no one is reaching out."

The photo is not related to the specific content of the article. Pixabay

Amazon, Microsoft, and Intel see successive layoffs

Meanwhile, workforce reductions continue to ripple through major technology companies in the United States. Amazon and Microsoft have each announced large-scale layoffs multiple times in recent months. According to CNN, Microsoft’s total headcount declined last month for the first time in a decade, while Amazon has laid off more than 30,000 employees since October of last year.

Last month, Intel announced layoffs focused on its data center business and other divisions. The company’s number of employees has dropped from 130,000 in 2022 to 81,000 currently.

Companies are becoming increasingly cautious in their hiring. In a recent survey by the Federal Reserve Bank of San Francisco, companies responded that they are hiring selectively—only when vacancies arise due to resignations or when staff is needed for specific roles.

This content was produced with the assistance of AI translation services.