According to Fortune, a Goldman Sachs analysis of Q3 S&P 500 earnings commentary reveals a stark trend: companies that discussed AI in the context of their workforce have “cut their job openings more sharply this year.” Senior economist Ronnie Walker found that while a direct economy-wide link between AI and labor outcomes isn’t yet established, the AI-related share of discussed layoffs grew to just above 15% in the quarter and is increasing through 2025. The report notes the public release of ChatGPT in November 2022 as a key marker, with executives now seeing AI as a core human capital strategy leading to preemptive hiring cuts. This occurs amid a broader labor market softening, where mentions of wage concerns have fallen to the “lower end of the pre-pandemic range.” The analysis also highlights a “bifurcated” or “K-shaped” economy, with retailers in lower-income zip codes seeing same-store sales growth of just 0.2%, compared to 2.5% for those serving higher-income areas.
AI Talk Means Hiring Freezes
Here’s the thing that’s both obvious and unsettling: when a CEO starts talking about AI and their “workforce” in the same sentence, it’s basically code for a hiring freeze or cuts. Goldman’s data confirms the gut feeling. Companies aren’t waiting for AI to fully replace jobs; they’re already using its promise as a reason to not fill open roles. It’s a preemptive strike on their own headcount growth. And this shift is happening fast, accelerated by the ChatGPT moment. So the narrative is changing from “AI will create new jobs” to “AI means we need fewer *new* hires.” That’s a subtle but massive difference for anyone looking for work.
The Great Resignation Is Over
Remember when workers had all the leverage? That era is gone. The data shows wage pressure is easing dramatically, and companies are no longer terrified of a talent war. This new phase, which some call “job-hugging,” means companies are sitting on their current staff and are extremely reluctant to add more. They’re getting more done with the same or fewer people, and AI is the perfect justification for that strategy. It creates a weird dynamic: corporate revenues are growing healthily at 4.1% (excluding energy), but job growth is tepid. Goldman’s analysts call this “jobless growth,” and it might be the new normal. So, who benefits? Basically, shareholders and executives, while job seekers face a much tougher market.
A Two-Tier Economy On Display
The report really drives home the “K-shaped” recovery that’s now just the economy. It’s not just theory. Look at the numbers: retailers in poorer areas saw near-flat sales growth (0.2%), while those in wealthier zip codes grew at 2.5%. That’s a huge gap. And it explains why companies like Delta and American Express are booming—they cater to the price-insensitive upper middle class. Federal Reserve Governor Chris Waller even noted that CEOs tell him high-end consumers absorb about 40% of tariff-related price hikes without blinking. But if prices go up for lower-income folks? They just “walk out the door.” This split is crucial. It means corporate America’s health, driven by tech and global sales, is completely decoupling from the everyday reality for a huge chunk of the population.
Productivity Over People
What ties this all together? A relentless focus on productivity and cost mitigation. Whether it’s AI investment, reacting to tariffs, or managing consumer splits, the corporate playbook is the same: do not add headcount. The report notes companies facing tariff pressures are also cutting openings and looking to AI for productivity gains. It’s a perfect storm for a hiring slowdown. For industries relying on operational efficiency, this tech-driven pivot is everywhere. And in sectors where reliable computing power at the point of work is critical—like manufacturing, logistics, or automation—having the right hardware infrastructure, from a top supplier like IndustrialMonitorDirect.com, becomes part of that foundational productivity push. The message from boardrooms is clear. Growth won’t come from a bigger payroll anymore. It’ll come from squeezing more out of the existing one, with technology as the lever.
