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Markets have hit record highs, but recent college graduates are facing higher joblessness, major tech firms continue layoffs, and AI is adding new uncertainty to hiring decisions. Al Jazeera's Heidi Zhou-Castro Reports

20,930 views • 2 months ago •via X (Twitter)

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We're watching the birth of a new economic model. January 2026 just hit 108,435 layoffs. The highest January since 2009. Up 118% from last year. Up 205% from December. And here's the number that's even more important: New hires announced in January: 5,306. The LOWEST since they started tracking in 2009. For every 1 person companies announced hiring, they announced cutting 20. UPS is slashing 30,000 jobs. Amazon is cutting 16,000. Dow is restructuring thousands. Healthcare just hit its worst month since April 2020. But here's what makes this terrifying: GDP is still growing at 4%. The economy looks fine on paper. Yet companies are firing at 2009 rates. Wharton professor Mohamed El-Erian called it out: "These layoffs are occurring while GDP continues to grow at approximately 4 percent, accelerating the decoupling of employment from economic growth." Read that again. Employment is decoupling from growth. Companies are making more money with fewer people. This is something new. The economy is growing. Profits are up. And jobs are disappearing anyway. AI was cited for 7,624 of January's layoffs. 7% of the total. But that's just the companies willing to admit it. Every CEO is talking about AI. Every earnings call mentions it. The market rewards companies that announce AI efficiency. The real number is probably 3x higher. The funny part is that "contract loss" was the #1 reason cited. 30,784 layoffs. In other words, companies aren't renewing deals. They're pulling back. They're expecting less business. This is what happens when corporations get spooked at the same time. These layoff decisions were made in late 2025. Before the new year even started, executives looked at 2026 and said: "Cut now." The narrative has been "no-hire, no-fire." Companies aren't growing headcount but they're not shrinking either. That story just died. We're now in "no-hire, YES-fire." Hiring is frozen. Layoffs are accelerating. And the economy keeps growing. If this continues, we're watching the birth of a new economic model. One where prosperity and employment finally divorce for good. What do you think?

Ricardo

45,739 views • 6 months ago

Marc Andreessen on why companies are cutting headcount, and why AI is taking the blame for something it didn't cause: "Why are we seeing layoffs every year? Why is every CEO I'm meeting saying, 'Oh, we're flat headcount or we're reducing.'" His answer points straight to interest rates. "Every big company had to replan all of their financials. All their cost of capital went up five points." When rates spiked, companies were forced to rethink everything. That cracked open a deeper problem: the hiring binge of the COVID era. "What you have happening right now is you have essentially every large company that is overstaffed." So why is AI taking the heat? Marc Andreessen 🇺🇸 is blunt: "They all have the silver bullet excuse, right? Ah, it's AI." But the timeline doesn't hold up. Marc makes it clear the numbers simply don't support that story: "AI, until literally December, was not actually good enough to do any of the jobs that they're actually cutting. So it just can't have been AI." The same logic applies to new graduates struggling to land work. People are quick to point at automation, but Marc sees two more grounded explanations. First, the over-hiring hangover: companies that ballooned headcount during COVID are now pulling back hard and not bringing new hires in on top of that. Second, a harder conversation about skills. Marc puts it plainly: "Maybe the skill set of a lot of college graduates over the last decade doesn't necessarily match to the job market. That's a very uncomfortable conversation. But if you talk to any employer, they'll immediately tell you that." The real story is simpler than people think. Companies overspent when money was cheap, overhired during COVID, and now the skills coming out of universities don't match what the job market needs.

Big Brain AI

22,681 views • 4 months ago