The disconnect between AI hiring booms and corporate layoffs

While corporate leaders frequently blame artificial intelligence for workforce reductions, economic data suggests a different reality. Torsten Sløk, chief economist at Apollo Global Management, reports seeing zero evidence of AI-driven job losses, arguing instead that the current technology surge is creating new demand for labor rather than eliminating it.

Sløk points to the Jevons paradox to explain this phenomenon: as technology increases efficiency, the consumption of the resource—in this case, human labor—actually rises. His analysis draws on the ADP National Employment Report, which shows private companies added nearly 110,000 jobs in April. According to Sløk, the massive buildout of data centers and the integration of AI systems are driving up salaries and fueling employment across the tech sector.

This perspective has gained traction among industry heavyweights, including Dell CEO Michael Dell and Goldman Sachs CEO David Solomon, who share the view that AI acts as a productivity multiplier. Even Nvidia’s Jensen Huang has dismissed the narrative of AI-related layoffs as lazy, suggesting that firms citing the technology as a justification for cuts are often using it as a convenient cover. This sentiment is echoed by OpenAI CEO Sam Altman, who has labeled the practice of blaming AI for staff reductions as AI washing.

Despite these assurances, a clear tension remains. Major companies like Block, Cisco, and IBM have explicitly cited AI as a factor in recent restructuring efforts. Block CEO Jack Dorsey noted that intelligence tools allow for smaller, flatter teams, fundamentally altering how companies operate. While executives like those surveyed by EY remain optimistic that AI will stabilize or increase headcount by 2026, the immediate experience for many workers involves a landscape where efficiency gains are being used to justify leaner, more automated organizations.