The US unemployment rate fell to 4.1% in December, beating expectations, as nonfarm payrolls increased by 256,000 jobs – the highest level since March last year. Economists had predicted a gain of 160,000 jobs. The US economy added 2.32 million jobs in 2024.
While job growth is strong, not all sectors are positive. Management jobs continue to decline, and white-collar workers have seen shrinkage over the past 12 months. According to the World Economic Forum, over 40% of companies worldwide expect to reduce their workforces due to artificial intelligence (AI). Several major companies, including Google, IBM, Tesla, and Microsoft, announced job cuts in 2024.
These layoffs are partly driven by AI capabilities. BlackRock plans to cut about 1% of its jobs in 2025, affecting around 200 people. Bridgewater reduced its staff by 7% in the latest round of cuts, while The Washington Post and Ally also laid off workers. In contrast, non-cyclical industries like healthcare, retail, and leisure/hospitality added significant numbers of jobs.
The job growth picture is changing for 2025, with opportunities shifting to non-tech sectors. While overall job growth remains strong, the industry’s impact on job security depends on one’s skills. As AI continues to influence the workforce, workers must develop relevant skills to stay competitive.
Source: https://www.forbes.com/sites/chriswestfall/2025/01/10/us-job-growth-excels-but-these-companies-are-announcing-layoffs