This weekly update examines how AI is affecting workers and their jobs during this important time of change. Understanding what is happening to workers is crucial because it shapes the future of work for millions of people.

The Big Numbers Tell a Story of Worry

In February 2026, United States employers cut 92,000 jobs, shocking many experts who thought the job market would grow. This unexpected drop has made many workers and observers concerned about the future. Business leaders are warning that an invisible layoff is happening—a situation where AI systems quietly prevent qualified workers from even getting interviews for jobs they could do. One chief executive explained that when job seekers use AI to write perfect resumes and submit them to many companies at once, the AI hiring systems favor other AI-written resumes and reject human-written ones. This creates an unfair situation where people with real skills cannot even get their chance to interview.

Young Workers Face the Hardest Times

Young people entering the workforce are feeling the biggest effects. Research shows that from 2022 to 2025, job growth has been weaker for younger and less-educated workers. This is the exact period when tools like ChatGPT became popular and widely used by companies. Studies show that young workers aged 22 to 25 are 14 percent less likely to get hired into jobs that are exposed to AI automation. These include jobs in computer programming, customer service, data entry, medical records management, and marketing. What worries people most is that if companies stop hiring entry-level workers, young people will have nowhere to start their careers and climb the ladder to better jobs.

Which Jobs Are Most at Risk

Experts have identified the jobs most exposed to AI disruption. Computer programmers, customer service workers, data entry specialists, medical record keepers, and marketing professionals face the biggest challenges. These jobs involve routine, rules-based tasks that AI can now perform. Researchers found that job listings for these positions now ask for seven percent fewer skills than before, suggesting that these jobs are becoming simpler or disappearing altogether. However, jobs that require physical movement, like cooking, fixing motorcycles, or bartending, remain safer from AI automation.

The Mystery of Why Companies Are Cutting Workers

Some experts believe companies may not be cutting workers purely because of AI efficiency. Instead, they suggest that companies are using worker layoffs to fund their huge AI investments. Major technology companies are spending enormous amounts of money on AI—some spending over $100 billion per year. These costs are so high that companies may need to cut workers just to pay for the AI systems. When these companies announce layoffs, they say AI made them more efficient, but the real reason might be that they need money for AI spending.

Workplace Stress from Algorithmic Control

AI is changing work in ways beyond just job cuts. In the United Kingdom, about two-thirds of drivers and delivery workers report feeling anxious and stressed because computer algorithms now decide their work schedules, task assignments, and even their pay. These systems often offer no way for workers to appeal unfair decisions, leaving them feeling powerless. This new type of management, called algorithmic management, can make work more intense and even create safety problems. Trade union leaders warn that deploying AI without proper safeguards can reinforce unfair treatment of workers.

People Still Prefer Working with People

Despite all the worry about AI replacing workers, surveys show that most employees and managers still prefer to work with other humans rather than AI. Only nine percent of workers say they would like their entire team to be replaced with AI tools. Managers and executives worry about the dangers of overworking remaining employees and creating legal problems if workers are treated unfairly in the new AI environment. Additionally, 76 percent of HR professionals are concerned that cutting entry-level jobs will damage the pipeline of future leaders.

What Canada and the World Are Doing

In Canada, researchers say the government's AI policy focuses too much on helping companies make money from AI and not enough on protecting workers. Canada's Chief Data Officer stated that AI will lead to job cuts in the federal government. Meanwhile, the World Economic Forum predicts that by 2030, 40 percent of employers expect to eliminate jobs where AI can handle routine tasks. However, the same report also predicts that new jobs will be created, suggesting that the economy might transform rather than simply shrink.

The Question That Remains Unanswered

While all these changes are happening, research shows that AI has not yet caused broad, massive job losses across the entire economy. Unemployment rates for workers in AI-exposed jobs remain relatively stable so far. This suggests that the biggest disruptions may still be coming in the future. Experts emphasize that this is a critical time to prepare workers with new skills and to create policies that help people transition to new types of jobs as AI continues to advance.