Survey by Mercer looks at AI's impact on hiring volume over past year
Artificial intelligence and automation are having a limited impact on hiring, according to a recent report.
Specifically, only 1% of survey respondents cite AI and automation as a reason for reduced hiring over the past year.
A further 62% report no significant change to hiring volumes despite AI adoption in the last 12 months.
The survey by Mercer of 462 organisations in Canada also found that only 3% of organisations are proactively planning headcount changes directly related to AI.
“While AI is changing the way many employees and companies work, there is still a critical need for human beings to use the tools and provide their judgment,” says Teresa Palandra, Mercer president. “Most companies are using AI to help employees be more productive, rather than replace people all together, which explains the limited impact of AI on compensation and hiring decisions so far.”
Here are some employers that are said to be laying off workers amid the rise of AI:
50,000: AI and layoffs in U.S.
AI was the reason for almost 55,000 layoffs in 2025 in the U.S., out of a total of 1.17 million announced job cuts across the labour market, CNBC reported recently, citing data from consultancy Challenger, Gray & Christmas.
That marks the highest annual total since 2020, when companies announced 2.2 million layoffs during the first year of the Covid-19 pandemic, the outlet notes.
U.S. employers announced 153,000 job cuts in October and more than 71,000 in November, with AI specifically cited in over 6,000 layoffs in November alone, according to figures highlighted by CNBC. The report indicates that, in many cases, organisations are explicitly referencing AI in their restructuring rationales, linking workforce reductions directly to automation and efficiency initiatives.
The layoffs come as companies face pressure from persistent inflation and higher costs associated with tariffs, prompting many to adopt AI as an “attractive, short-term solution” for reducing expenses, noted CNBC. The technology is being deployed across multiple functions, including finance, healthcare and other professional services, where it can automate tasks previously handled by human employees.
A study released in November by the Massachusetts Institute of Technology, also cited by CNBC, found that AI can already perform the work of an estimated 11.7% of the U.S. labour market. The research suggests that automating those tasks could save up to US$1.2 trillion in wages across white-collar sectors.
