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As U.S. corporate profits soar and the stock market reaches new heights, nearly 1 million jobs have been cut this year, marking the largest layoffs since 2020. This phenomenon, termed a “jobless boom” by Chen Zhao of Alpine Macro, is attributed to the rapid adoption of artificial intelligence, which boosts productivity but decreases labor demand. Despite the layoffs, the unemployment rate remains low due to a shrinking labor pool from retiring baby boomers and reduced immigration. Experts suggest that businesses may be recalibrating post-pandemic rather than solely relying on AI as a reason for job cuts.
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