Skip to main content
JP Morgan Asset Management - Home
  • Products
    Overview

    Funds

    • Performance & Yields
    • Liquidity
    • Ultra-Short
    • Short Duration

    Solutions

    • Empower Share Class
    • Academy Securities
    • Cash Segmentation
    • Separately Managed Accounts
    • Managed Reserves Strategy
    • Capitalizing on Prime Money Market Funds
  • Insights
    Overview

    Liquidity Insights

    • Liquidity Insights Overview
    • Case Studies
    • Partnership with fintechs
    • Leveraging the Power of Cash Segmentation
    • Cash Investment Policy Statement

    Market Insights

    • Market Insights Overview
    • Eye on the Market
    • Guide to the Markets
    • Market Updates

    Portfolio Insights

    • Portfolio Insights Overview
    • Currency
    • Fixed Income
    • Long-Term Capital Market Assumptions
    • Sustainable investing
    • Strategic Investment Advisory Group
  • Resources
    Overview
    • MORGAN MONEY
    • Global Liquidity Investment Academy
    • Account Management & Trading
    • Announcements
    • Navigating market volatility
    • 2024 US Money Market Fund Reform
  • About us
    Overview
    • Diversity, Opportunity & Inclusion
    • Spectrum: Our Investment Platform
    • Sustainable and social investing
    • Our Leadership Team
  • Contact us
  • English
  • Role
  • Country
MORGAN MONEY LOGIN
Search
Menu
Search
You are about to leave the site Close
J.P. Morgan Asset Management’s website and/or mobile terms, privacy and security policies don't apply to the site or app you're about to visit. Please review its terms, privacy and security policies to see how they apply to you. J.P. Morgan Asset Management isn’t responsible for (and doesn't provide) any products, services or content at this third-party site or app, except for products and services that explicitly carry the J.P. Morgan Asset Management name.
CONTINUE Go Back

Today’s cautious hiring environment likely reflects more fundamental macro drivers: policy uncertainty, constrained labor supply and slowing economic growth.

The recent slowdown in U.S. hiring has renewed questions about AI and its impact on the workforce. Recent employment data shows job growth averaging just 35,000 from May through July, a significant drop from the 127,000 pace earlier in the year. Meanwhile, this earnings season has seen companies showcase a variety of AI strategies, from agentic tools that can write code or create PowerPoint presentations, to individualized pricing strategies for flights. Some CEOs have even directly signaled that AI may reduce their workforce in the coming years.

Is AI behind the recent hiring slowdown, or are we mistaking correlation for causation?

Still early in the AI adoption cycle

AI adoption remains in its infancy. Census data show that less than 10% of firms use AI to produce goods and services today, and while that data does not reflect intensity of AI usage, we know that true automation often requires integrated, domain-specific AI agents, governed by compliance systems and orchestrated by human teams. A recent McKinsey survey found that only 1% of businesses have mature AI deployments driving business outcomes.1

Even among companies that have access to tools like ChatGPT (and less than half subscribe to paid versions), general-purpose LLMs go nowhere near achieving wholesale workforce automation. Research shows that in the software engineering field, even the most advanced models achieve an 80% success rate in autonomously completing tasks that would require up to 20 minutes of human effort2—surely helpful, but far from replacing a full workday.

AI is reshaping roles, not eliminating them

In 2025, many companies have focused on retraining and upskilling in response to AI integration. IBM reported that AI-powered learning platforms reduced employee training time by up to 25% and improved engagement. Firms like PwC and MasterCard have used internal AI academies and expanded demand for AI-literate talent across business functions. In software engineering, tech CEOs emphasize the shift from code writing to managing AI-generated code, turning developers into “creative directors of code”. Despite significant AI exposure, the BLS projects an 18% increase in employment for software developers by 2033, much faster than the average for all occupations (4%), as AI drives demand for database administrators and architects to support AI solutions.

If AI isn’t the full story, then what is? Today’s cautious hiring environment likely reflects more fundamental macro drivers: policy uncertainty, constrained labor supply and slowing economic growth. As the policy picture crystallizes, hiring activity could improve. Indeed, as tariff turmoil subsided in June, the seasonally adjusted unemployment rate for recent college graduates improved to 4.8% from May’s 5.3%.3

A long-term transition is still ahead

Looking ahead, AI will become a more material driver of labor market change. The World Economic Forum expects that roughly 60% of jobs in advanced economies may be affected by AI, and about 39% of current workers’ skills will become outdated by 2030. AI will drive both job creation and displacement, with the net impact depending on how quickly economies and individuals adapt to new skill demands.

In the meantime, today’s hiring slowdown looks more like a reflection of economic caution than technological disruption.

1 McKinsey & Company “Superagency in the workplace: Empowering people to unlock AI’s full potential”, January 2025.
2 METR, the time-horizon of software engineering tasks different LLMs can complete.
3 Federal Reserve Bank of New York, The Labor Market for Recent College Graduates.
 
b303a302-72cc-11f0-812f-bdf635630a3f
  • Artificial Intelligence
  • Macroeconomic
  • Technology and automation
J.P. Morgan Asset Management

  • Investment stewardship
  • About us
  • Contact us
  • Privacy policy
  • Cookie policy
  • Sitemap
  • Accessibility
J.P. Morgan

  • J.P. Morgan
  • JPMorgan Chase
  • Chase

READ IMPORTANT LEGAL INFORMATION. Legal Disclaimer >

The value of investments may go down as well as up and investors may not get back the full amount invested.

Copyright 2025 JPMorgan Chase & Co. All rights reserved.