Mass AI-Driven Layoffs Not Expected, Oxford Economics Says -- Market Talk

Dow Jones01-08

1256 ET - There is so far little evidence artificial intelligence is driving large-scale jobs losses, Oxford Economics director of global macro research Ben May says. "Firms do not appear to be replacing workers with AI on a significant scale, and we doubt that unemployment rates will be pushed up heavily by AI over the next few years," he says in a note. But while a rising number of firms pin job losses on AI, and anecdotal evidence suggests jobs are already being lost in sectors vulnerable to automation, more traditional drivers of layoffs remain far more common, he says. "We suspect some firms are trying to dress up layoffs as a good news story rather than a bad one, for example by pointing to technological change instead of past overhiring," he said. (edward.frankl@wsj.com)

(END) Dow Jones Newswires

January 07, 2026 12:56 ET (17:56 GMT)

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But while a rising number of firms pin job losses on AI, and anecdotal evidence suggests jobs are already being lost in sectors vulnerable to automation, more traditional drivers of layoffs remain far more common, he says. \"We suspect some firms are trying to dress up layoffs as a good news story rather than a bad one, for example by pointing to technological change instead of past overhiring,\" he said. 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But while a rising number of firms pin job losses on AI, and anecdotal evidence suggests jobs are already being lost in sectors vulnerable to automation, more traditional drivers of layoffs remain far more common, he says. \"We suspect some firms are trying to dress up layoffs as a good news story rather than a bad one, for example by pointing to technological change instead of past overhiring,\" he said. 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