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US economy at a standstill: AI causes job losses and uncertainty!
The US economy stagnated at the end of 2025. AI leads to job losses, while uncertainties and rising wages create new challenges.
US economy at a standstill: AI causes job losses and uncertainty!
The current state of the US economy is raising eyebrows. According to that Federal Reserve Beige Book, economic activity has barely changed in recent weeks. Although the stability of the labor market is officially emphasized, many companies are reporting job cuts. The pressure comes primarily from weaker demand, increasing uncertainty and, last but not least, increased investment in artificial intelligence (AI).
These AI investments not only lead to job losses, but also to a dramatic process of change in the labor market. Sectors such as hospitality, construction, agriculture and parts of industry are suffering from an acute shortage of skilled workers. Loud Report This deficiency also results from a restrictive immigration policy. In California, huge fields remain uncultivated, while in Texas construction companies are desperately looking for workers. The hotel industry in New York is also complaining about a lack of staff. Under these conditions, economic growth not only declines, but actually stagnates.
The challenges of artificial intelligence
The introduction of AI is no longer a dream of the future, it is a reality. Experts estimate that up to 50% of all entry-level office positions could be eliminated due to automation. In 2023, almost 4,000 jobs in the US have already been eliminated as a result of AI implementations, while job openings in the AI sector increased by a pleasing 68%. The Technology sector is particularly affected; 92% of IT jobs expect significant change.
Despite the growing importance of new technologies, there are also downsides. Major investment banks are already discussing reducing their entry-level jobs by up to two-thirds, which could be an alarming development for future generations. These trends show that traditional employment structures are being broken down and new technology-oriented jobs are emerging. The important practical skills such as AI knowledge and AI ethics are becoming more important, while traditional skills are becoming less relevant.
The economic forecasts at a glance
But what about the global economic outlook? The International Monetary Fund expects growth of around 2% for 2025 and 2026, after 2.8% in 2024. But the encounter with “technological stagnation” is keeping the economy vigilant. Economists warn that high investments in AI bring little measurable growth and the effects are unevenly distributed.
The Federal Reserve faces a major challenge. A possible interest rate cut of 0.25 percentage points will be decided on October 29th. Whether this provides the relief needed for stagnant markets remains to be seen. Finally, the disagreement in the monetary policy committee about further easing and the risks of inflation is also a problem child that could slow down the economy. In an election year, this stagnating economic development could also become politically explosive.
It remains exciting to see how all these factors will develop further. As technology advances, many are faced with the question: What's next? And in what ways will the job market continue to change in the near future?