This weekly update reveals growing concerns about how AI agents are reshaping the job market worldwide. Government officials and business leaders are warning of significant changes ahead, while some companies are already making major workforce cuts.

Federal Reserve Governor Michael S. Barr painted a worrying picture on February 17, describing a possible future where AI agents replace workers in many professional jobs, leaving large numbers of people without suitable employment opportunities. Meanwhile, venture capitalist Vinod Khosla suggested that AI could handle 80% of tasks in most jobs, requiring dramatic changes to how governments handle taxes and worker support.

The effects are already visible. In January, American companies announced over 108,000 job cuts—the worst start to any year since 2009. Major companies like Amazon cut 16,000 corporate jobs, while Salesforce eliminated 4,000 customer support positions after AI tools absorbed roughly half the workload. However, it's important to note that entry-level and early-career workers are being hit hardest, with some experiencing a 13% decline in employment, while experienced workers remain relatively stable.

Governments are responding. The United States Department of Labor released an AI Literacy Framework on February 13, helping employers teach workers how to use artificial intelligence responsibly and effectively. Meanwhile, China announced plans to support workers impacted by AI through training programs and job assistance, recognizing that AI changes jobs rather than simply eliminating them.

OpenAI CEO Sam Altman also warned that some companies are engaging in "AI washing," falsely blaming AI for layoffs they would make anyway. Despite warnings, actual proven AI-driven job losses remain limited so far, though the anxiety among workers has jumped from 28% in 2024 to 40% in 2026.