The U.S. job market, already showing the strain from global trade tensions , is showing early signs of another critical issue facing workers today: artificial intelligence.

For the first seven months of 2025, rising adoption of generative AI technology by private employers accounted for more than 10,000 job cuts, according to a report released this week by Challenger, Gray & Christmas. The outplacement firm lists AI as one of the top five factors contributing to job losses in 2025.

Layoffs have jumped this year, adding to fresh concerns about a pullback in hiring after new labor data on Friday showed that employers added only 73,000 jobs in July — well short of analyst forecasts. Through July, companies have announced more than 806,000 private-sector job cuts, the highest number

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