How will a bunch of robots vaproisze retirement accounts?
Oh no. Good old fashion economics are going to do that.
We have a free-money withdrawal convulsion coming like a junkie in jail. All the raising of interest rates last year? It's just now really hitting the economy (it takes 12 months) and top it off with a tariff cherry on top and ...Bob's your uncle.
AI won't be the primary cause, but the mass layoff coming next year will take the rest of the wind out of consumer spending that inflation and tariffs didn't. There will be real fear in the consumer population next year. No white collar worker knows when they will lose their job next. That puts a damper on big spending.
I don't think AI is the only cause, but it might be the straw that breaks the camel's back.
yes: evidence suggests that layoffs are up in 2025 (at least in the U.S.). Here’s the picture as of now.
📉 What the data says for 2025
Employers have announced over 1.17 million job cuts so far in 2025 — a jump of roughly 54% compared with the same period last year. That makes 2025 the first year since the pandemic with more than 1.1 million layoffs.
Some major months saw big spikes — e.g. in October, layoffs hit a two-decade high, with ~153,000 job cuts announced in that month alone.
The increases aren’t evenly spread: sectors seeing especially large layoffs include tech, retail, warehousing, and government.
🔎 Why layoffs are rising
Some layoffs reflect traditional cost-cutting and restructuring by companies facing macroeconomic headwinds and demand softness.
A significant driver is the adoption of automation and AI, which is shifting how companies staff — reducing need for certain roles even when business continues.
For many firms, the “hire-freeze then small cuts” approach that characterized much of the post-pandemic era seems to be ending: companies are now more willing to reduce headcount to protect margins.
For 18-24 yo, unemployment is already running over 10%. It's going to get a lot worse next year.
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