Complete article since it’s paywalled:

America’s biggest companies say they might need more people after all.

For months, major employers treated hiring as an expensive last resort. Now, a shift is emerging across industries. Companies ranging from railroad giant CSX to Google parent Alphabet GOOGL 0.65%increase; up pointing triangle have told investors in recent days that they plan to hire to meet growth goals or to seize on emerging technologies.

The push to expand head count, at least modestly, is a reversal from the prevailing corporate messaging during much of the AI era. Major employers largely held back on adding people due to economic uncertainties or a belief that artificial intelligence could shoulder more tasks on the job. But some executives say the costs and limitations of AI now demand that more people be added; others want to hire people back following layoffs.

“We actually need to accelerate hiring a bit. We’re a little bit behind right now,” Booz Allen Hamilton’s Chief Operating Officer Kristine Martin Anderson told investors Friday. “We’re addressing that now.”

The government contractor cut thousands of jobs last year as the Trump administration slashed federal contracts and asked firms to justify their costs. Total head count stood at roughly 30,900 as of June 30, down 7.5% from a year earlier. But the company now sees healthy demand for its services, including in national security for workers who need security clearances.

For much of the past 18 months, big employers were convinced fewer workers meant faster growth. U.S. public companies shrank their white-collar workforces. Now layoffs are shrinking. The most recent week of U.S. jobless claims was the lowest on record since 1969, according to federal data.

Part of the change in hiring also reflects a recalibration among employers about what AI can do, said Sarah Franklin, CEO of the human-resources platform Lattice. Many companies stopped hiring entry-level employees, thinking AI agents could pick up the slack. They have since realized that humans are necessary to work alongside AI.

“Just because you have coding agents doesn’t mean you’re not hiring engineers,” she said, adding that companies with AI sales agents also need salespeople.

Across Lattice’s thousands of clients, many are now back in hiring mode for a number of roles, particularly junior positions.

“There’s a big thirst for that,” Franklin said. “What you have now is a realization that you need the AI-native skills. You need this [entry-level] workforce, which is innovative, not calcified in thought. They’re also more affordable because they are newer to the workforce.”

The pickup in hiring goes beyond white-collar professions. Tool maker Snap-on said it plans to add employees to expand its business. CSX said its train and engine service head count will “increase modestly” in the coming months to help it meet higher demand, even as it looks to technology to make up for attrition in other parts of the company. The transport company noted its head count is still lower than it was a year ago.
Workers preparing the invert for concrete in the CSX Howard Street rail tunnel in Baltimore.
Workers at a CSX rail tunnel in Baltimore. Karl Merton Ferron/Baltimore Sun/Tribune News Service via Getty Images

Few companies are saying they plan to go on major hiring sprees, and employers are also making clear they are in the market for certain types of workers.

Alphabet Chief Financial Officer Anat Ashkenazi said the technology company expects to continue hiring in key investment areas such as AI and cloud computing. The software company ServiceNow wants to hire more “quota-bearing feet-on-the-street sales execs” to capture growth in areas like cybersecurity.

M. Keith Waddell, CEO of staffing firm Robert Half, said that AI’s impacts on the job market are proving to be “more benign than some have feared.” The firm works to place people in roles from tech to financial services, and some clients are recruiting again.

“Hiring demand continues to improve and market conditions are increasingly more supportive of our business,” he said.

Some caution, though, that much remains unclear as AI’s ultimate potential continues to evolve. “Do we need more people? Do we need less people?” asked Paul Osterman, a professor emeritus at MIT, and the author of “Disposable Workers,” a new book on the transformation of employment. “We have no idea. No one has any idea.”

Osterman said many companies treated employees as dispensable, cutting them when convenient, or downgrading them into contractor or part-time roles. He expects that trend to continue in this moment of flux.

“AI introduces so much uncertainty with employers, not sure knowing what they need or don’t need,” he said, adding that the drumbeat of AI’s power to displace humans and save shareholders money won’t stop. “Who’s going to be the victim of all that noise?”

  • melsaskca@lemmy.ca
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    2 hours ago

    Big companies stupidly fired people they needed due to “AI” greed fantasies. Let’s lower those grotesquely huge CEO bonuses for a while and split it amongst the employees as an apology for being so stupid and greedy.

  • TammyTobacco@sh.itjust.works
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    4 hours ago

    The only people they’re hiring are overseas contractors and H1b visa holders because they can pay them little and treat them like slaves, while also screwing over the people that live in the area.

  • sunbeam60@feddit.uk
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    4 hours ago

    I’ve worked in many large enterprises. They always cut too deep - thats the tactic: Cut more than needed to remove the “fat” (in the eyes of the decision holders) then rehire a bit where you’re not holding up.

    In this case it’s two steps back and one step forward. Net, it’s still a reduction of the org size.

  • TropicalDingdong@lemmy.world
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    10 hours ago

    Ai coding ultimately is a more expensive way of doing things and, potentially, might be industry catastrophic in the long run. Which is fine because by and large the software industry is solutions looking for answers

    • Aceticon@lemmy.dbzer0.com
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      4 hours ago

      It’s a great way of doing something that was already done a thousand times and which will never need to be supported or improved on.

      The very opposite of the kind of software that’s either need in a company large enough to need in-house development or whose business model is software products or services.

  • nkat2112@sh.itjust.works
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    11 hours ago

    For much of the past 18 months, big employers were convinced fewer workers meant faster growth.

    This is incredibly shortsighted.

    I’m not certain the MBA degree is worth the paper upon which it’s written.

    • Bobby Turkalino@sh.itjust.works
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      10 hours ago

      MBAs are an actual Ponzi scheme. The university departments that run them are usually not even on the main campuses and are on separate bankrolls because they don’t produce research. Instead, they’re funded by wealthy alumni who just want to pump up the value of their own degrees. Tuition is usually covered by employers anyways, so it’s another case of businessmen scamming businessmen (just like AI). The concepts taught are all common sense things that could be learned in a single weekend.

    • TallonMetroid@lemmy.world
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      11 hours ago

      The point of getting an MBA isn’t to demonstrate competence, but to spend years immersing yourself in the incestuous networking that the business caste actually cares about.

    • Malyca@lemmy.zip
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      6 hours ago

      Trump has an economics degree from an ivy league university and he doesn’t understand how tariffs work. That killed the last shred of faith I had in university degrees.

  • HaraldvonBlauzahn@feddit.org
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    8 hours ago

    “You need this [entry-level] workforce, which is innovative, not calcified in thought.”

    LOL, they are projecting their own mental state on their workers.

    • m4ylame0wecm@lemmy.zip
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      2 hours ago

      They’re also more affordable…

      Real reason: dump higher salary/benefit for entry level.

      Then ServiceNow’s brilliant thinking: more sales execs!

    • WanderingThoughts@europe.pub
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      8 hours ago

      … which hasn’t learned yet they’ll not get any promotion or credit for good ideas and most likely will only receive more work and pressure

      FTFY

  • Superorbit@lemmy.ca
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    12 hours ago

    I’m not getting my hopes up quite yet. I gotta see those token prices rise, and those slop stocks dip. When people stop ramming AI into literally fucking everything, maybe I’ll let myself believe.

    • Mereo@piefed.caOP
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      2 hours ago

      In my opinion, AI is here to stay. But OpenAI and Anthropic will suffer because companies realized that don’t need a Ferarri all the time, they can do with a Honda (Chinese open-source models) 90%of the time.

    • Venator@lemmy.nz
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      4 hours ago

      A token price rise might convince people to hold onto the slop stocks however…

  • missingno@fedia.io
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    11 hours ago

    I got my degree in CS a decade ago, but wasn’t able to get my foot in the door finding any entry level position in the field. Had to give up and work a shitty unrelated job elsewhere, but after letting it drain my my soul for too long I’ve spent all year searching again. But no matter how many resumes I fire out into the void I have yet to get as far as even a single interview. It still feels like my degree isn’t worth the paper it’s printed on. The only thing recruiters want is 5 years of experience in some technology that came out 2 years ago, and I can’t get experience because I don’t have experience.

    • SupraMario@lemmy.world
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      5 minutes ago

      Gotta start at help desk. It’s basically how a huge portion of us started. It’s doing time.

    • BottleBoardBakon@lemmy.ml
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      10 hours ago

      Have you looked into contributing to open source in your free time?

      It doesn’t exactly pay, but it’ll give you an out to say you have experience

      • GnuLinuxDude@lemmy.ml
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        10 hours ago

        speaking from experience, this is a very soul-crushing way of gaining “experience” to find a job, because the hiring manager will probably have no clue what it is or assume it’s BS, and will still just care more about job experience.

  • HubertManne@piefed.social
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    11 hours ago

    the ai wipeout already happened. this if anything is a slight recovery but I doubt its going to be large enough to mess with the economic cliffs that will result in who knows what.