California is experiencing an unprecedented surge in job cuts, nearly tripling last year’s figures, according to a report by outplacement and coaching firm Challenger, Gray & Christmas.
The report reveals that California has surpassed all other states in terms of job cuts, recording more than double the number seen in second-place New York. From January 1 to October 1, 171,530 Californians lost their jobs, a stark contrast to New York’s 74,237 layoffs during the same period.
Comparatively, at this point last year, California had seen 61,623 job cuts. Excluding the pandemic-affected year of 2020, this marks the highest number of job cuts since 2009, with 35% attributed to economic or market conditions. The report cites Artificial Intelligence (AI) as another significant factor contributing to job losses.
The implementation of AI technology by companies, either to augment or replace positions, has resulted in a notable impact on employment. The report highlights that in the latest Challenger Survey, 34% of companies were either using or exploring the use of AI in their operations, a substantial increase from the 11% reported in the spring.
Additionally, the report notes a decline in the creation of new positions nationwide. In the current year, companies have announced plans to hire 759,935 workers, reflecting a 46% decrease from the 1,400,468 new positions announced during the same period last year.
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