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US tech jobs are on the slide as AI snaffles entry-level jobs

  • Janco reported that the U.S. IT unemployment rate rose from 4.6% in April to 5.5% in May, marking the fifth consecutive month above the national average.
  • This rise results from recession fears triggered by erratic tariff policies and AI increasingly replacing entry-level IT jobs, especially in telecommunications.
  • EY found last month that 48% of business leaders adopted agentic AI, while employer AI job postings increased 117%, signaling a shift toward AI management skills.
  • According to Janco, job prospects in IT are expected to remain weak this year, with the exception of roles related to AI projects that enhance efficiency and reduce workforce needs.
  • Janco predicts continued IT job shrinkage this year amid economic uncertainty, with smaller markets facing more severe impacts than larger cities like New York or Dallas.
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Zero Hedge broke the news in United States on Sunday, June 8, 2025.
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