This weekly update reveals how artificial intelligence is creating massive changes for workers across the United States, with young employees facing the biggest challenges.

Job cuts are accelerating at an alarming rate. In July 2025 alone, more than 10,000 American workers lost their jobs specifically because companies adopted AI technology. This makes AI one of the top five reasons for job losses this year. The total number of job cuts announced through July reached over 806,000 - the highest since 2020.

The technology industry is leading these cuts. Tech companies announced more than 89,000 layoffs this year, which is 36% higher than last year. Since 2023, over 27,000 tech jobs have been directly eliminated because of AI. Companies are reshaping their workforce as AI becomes better at handling tasks that humans used to do.

Young workers are suffering most. The unemployment rate for people aged 20 to 30 in technology jobs has jumped by nearly 3 percentage points since early 2024. This is four times higher than the increase in the overall jobless rate. Recent college graduates are finding it particularly hard to get work, with their unemployment rate climbing to about 6% - much higher than the national average of 4%.

Entry-level jobs are disappearing. Companies are cutting these positions because AI can now handle many basic tasks like collecting data, making simple reports, and other routine work. Job postings for entry-level corporate roles have dropped 15% over the past year. A professor at Yale explained that AI is especially good at the predictable, tech-related work that new graduates typically start with.

Companies are changing their hiring practices. Shopify's CEO told staff they won't hire new people if AI can do the job instead. McKinsey has deployed thousands of AI agents throughout the company to handle work previously done by junior employees. Duolingo's CEO now uses "AI fluency" to decide who gets hired and promoted.

Some young people are adapting strategically. While 68% of Gen Z job seekers say AI makes finding work more competitive, many are changing their approach rather than giving up. They're positioning themselves as "AI force multipliers" - people who work with AI to get better results rather than competing against it.

The job search itself has become harder. About 58% of recent Gen Z graduates are still looking for full-time work, compared to only 25% of older generations. Some job seekers are sending out as many as 1,700 applications without success. The job hunt has become so difficult that searching for work has become like a full-time job itself.

Leaders have different views about the future. OpenAI CEO Sam Altman believes Gen Z will be the "luckiest generation in history" because of AI. He thinks completely new, exciting, and well-paid jobs will emerge. Altman even suggested that college students 10 years from now might leave on missions to explore space.

However, predictions vary widely. Some experts warn that AI could replace half of all entry-level white-collar jobs within just five years. Goldman Sachs economists estimate that AI will eventually displace 6-7% of all US workers over the next decade, though they expect the peak unemployment impact to be manageable at about 0.5 percentage points.

Research shows mixed results about AI's current impact. One study found that unemployment rates are actually rising faster for workers in jobs with less AI exposure compared to those with more exposure. This suggests the effects might be more complex than simple job replacement.

Some positive changes are happening too. AI is helping make workplaces more fair, especially with pay. About 22% of companies now use AI to set fair salaries, with another 63% considering it. This helps remove bias and makes pay more transparent for employees.

The overall picture shows that AI is fundamentally changing work in America, with young people bearing the biggest burden but also finding creative ways to adapt and survive in this new landscape.