US Adds 178,000 Jobs in March; AI Linked to Hiring Drops

The Bureau of Labor Statistics reported that U.S. employers added 178,000 jobs in March, a level little changed from February.

Hiring gains were concentrated outside the tech sector. Healthcare employment rose by about 76,000 jobs, construction added roughly 26,000, transportation and warehousing increased by about 21,000, and social assistance grew by about 14,000.

Several tech-related categories showed weak or negative movement. Computer systems design and related services lost about 13,000 positions. Computing infrastructure providers fell by roughly 1,500 jobs, and web search portal employment was essentially unchanged.

A tech jobs tracker recorded about 67,000 open positions since 2023, but those vacancies have not translated into equivalent hiring in broader monthly employment figures.

A Goldman Sachs analysis estimated that AI-related effects have reduced hiring by about 16,000 jobs per month over the past year, with the largest declines concentrated in entry-level roles.

A venture firm study found that new-graduate hiring in the tech industry has fallen roughly 50% compared with pre-pandemic levels. The report stated, “The door to tech once swung wide open for new grads. Today, it’s barely cracked,” and linked the decline to smaller funding rounds, shrinking teams and fewer formal programs for recent graduates.

Goldman Sachs highlighted occupational downgrading as a mechanism behind worsened outcomes for displaced workers, noting that workers who lose jobs to technology often move into more routine roles that require fewer analytical and interpersonal skills.

Senior executives report widespread use of AI. A survey in a management journal found about 80% of senior leaders use AI tools weekly and 74% reported that early deployments have produced positive returns. Executives described uses such as high-level synthesis, strategic drafting and decision support.

Worker and human-resources research shows different experiences. An HR consulting firm reported 43% of employees say their jobs have become more frustrating since AI tools were introduced. A software vendor analyzed productivity and estimated that for every 10 hours of efficiency gained through AI, nearly four hours are spent fixing its output. The vendor also found only 14% of respondents consistently achieve net-positive outcomes from AI use.

Researchers described a phenomenon labeled “workslop,” meaning AI-generated content that looks polished but lacks substance and shifts cognitive labor onto colleagues. That research reported 41% of workers have encountered such output, with each instance requiring about two hours of rework and creating downstream problems for productivity, trust and collaboration.

An innovation leader at an enterprise software company summarized the added burdens as “More checking. More rework. More anxiety. Faster pace. AI slop. Less trust.”

At least one major AI developer published a set of early policy proposals that include expanding health coverage, strengthening retirement savings and updating industrial policy to help workers and institutions adjust. The company wrote that without policy action, social safety nets and institutions could fall behind technological change.