US job optimism drops as AI boosts productivity but triggers layoffs in major firms.

According to Gallup's 2026 State of the Global Workplace report, American workers are less optimistic about job prospects, with job market optimism falling from 70% in 2019 to 47% in 2026. While AI adoption has increased productivity for 65% of workers in AI-using firms, only 12% believe AI has fundamentally changed their organization. The US added just 181,000 jobs in 2025, a sharp decline from 1.5 million in 2024, with significant layoffs at companies like Atlassian, Morgan Stanley, Oracle, and Capital One due to AI-driven role reductions. Federal Reserve officials warn that AI may cause job displacement before creating new roles, potentially causing hardship for many workers.