CEO warns AI may already be locking Americans out of jobs

AI may already be quietly pushing Americans out of jobs

Artificial intelligence is changing how employers screen applicants, and some hiring experts say that shift may be reducing how often qualified candidates reach a human reviewer.

RedBalloon CEO Andrew Crapuchettes argues that AI-driven screening can quietly narrow opportunities for workers before interviews even begin.

He describes this as an “invisible layoff” effect, with fewer openings reaching job seekers even when there is no formal round of cuts. While concerns about automated hiring are growing, the broader impact on overall employment remains harder to measure.

A new kind of layoff may already be happening

Crapuchettes believes the current job market disruption is different from past economic downturns. Instead of workers being formally laid off, artificial intelligence tools may be silently removing them from consideration before interviews even begin.

He describes it as an invisible layoff effect. AI-driven hiring systems sort through massive volumes of resumes and decide which applicants move forward, meaning some candidates may never reach human recruiters despite being fully qualified.

The latest jobs report raised new concerns

The February 2026 jobs report showed that U.S. employers shed 92,000 jobs, far below economists’ expectations for modest job growth. The unemployment rate rose to 4.4%, slightly above forecasts and a sign of a weaker labor market than many analysts expected.

The report intensified debate over whether AI driven efficiency could be slowing hiring in some sectors. However, the government data did not identify artificial intelligence as a primary cause of the monthly decline.

AI is boosting productivity inside companies

Many businesses are adopting artificial intelligence tools to automate repetitive work and improve efficiency. Andrew Crapuchettes says those gains are allowing some teams to handle more output without adding staff at the same pace as before.

That dynamic can reduce the need for immediate hiring in certain roles, especially when software absorbs routine tasks. The broader effect on the labor market is still being debated as companies balance productivity gains with longer term workforce needs.

Even job seekers are now using AI to apply

Artificial intelligence is now being used on both sides of the hiring process, with many applicants relying on AI tools to draft resumes and cover letters. Recruiters have reported a growing wave of polished, AI-assisted applications as job seekers try to apply more quickly and at greater scale.

Crapuchettes says that trend can make it harder to identify genuine qualifications at the top of the applicant pool. He argues that highly optimized applications may look strong in screening systems even when they do not fully reflect a candidate’s real experience.

Perfect resumes do not always mean perfect employees

One concern raised by critics of automated hiring is that AI systems may focus heavily on resume formatting and keyword matching. That can push certain applications to the top of the pile while others disappear during the screening process.

Crapuchettes says the problem becomes clear during interviews. A flawless resume produced by AI does not always reflect the actual skills or experience of the applicant, highlighting the limits of relying entirely on automated decision-making.

Little-known fact: The World Economic Forum Future of Jobs Report 2023 found that 83 million jobs are expected to be eliminated globally by 2027, while about 69 million new jobs could be created, resulting in a net loss of around 14 million jobs.

AI struggles to judge complex human qualities

Artificial intelligence is extremely efficient at handling repetitive or data-heavy tasks. However, evaluating the deeper qualities that make someone a strong employee can still require human judgment.

Crapuchettes argues that hiring decisions involve understanding personality, experience, and problem-solving ability. Reducing a complex individual to a resume and letting an algorithm make the decision may overlook talented people who could succeed in the role.

AI can replace hiring without replacing work

AI adoption can allow companies to increase output or maintain operations without expanding headcount at the same rate as before. In some workplaces, automation is absorbing tasks that previously would have supported additional hiring.

That can create a labor market where business activity continues even as job growth stays muted. For job seekers, the result may feel like a slower path to new opportunities even when the broader economy is still moving.

One company says AI tripled its output

Crapuchettes offered a clear example from his own company. He said RedBalloon was able to triple the productivity of its engineering team by using artificial intelligence tools more effectively.

However, the company did not increase its headcount during that time. The same team produced far more work using AI, which meant additional engineers who might have been hired in the past were no longer needed.

Government job losses are also shaping the market

Labor Department data shows federal government employment has dropped by about 330,000 jobs since its peak in October 2024. That represents roughly an 11 percent decline during that period.

Crapuchettes believes those job losses could shift more workers toward the private sector. While that transition may create short-term pressure in the labor market, he expects it could eventually lead to increased economic activity.

Little-known fact: A 2024 survey of 948 business leaders found that 51% of companies already use AI in their hiring process, and 82% of those rely on AI to review or screen resumes.

Employers increasingly want AI enabled workers

Despite concerns about job disruption, many employers are actively searching for workers who know how to use artificial intelligence. According to Crapuchettes, AI-related skills are now one of the most requested abilities across multiple industries.

He says workers in fields ranging from technology to construction may need to learn how AI tools can improve efficiency. Companies are increasingly looking for employees who can combine human expertise with modern technology.

For a real-world test of where AI creativity meets legal boundaries, check out how Disney has accused Google of using its AI services to exploit Disney’s copyrighted works.

Adapting to AI may become essential for workers

The growing influence of artificial intelligence suggests the job market may continue evolving quickly. Workers who understand how to use AI tools could gain an advantage as companies reshape their hiring strategies.

For now, experts say the key challenge will be balancing technological progress with fair hiring practices.

Want to see how AI can help you code faster? Here’s how OpenAI launches its Codex AI coding agent in ChatGPT.

What do you think about AI possibly reshaping how Americans find jobs? Share your thoughts.

This slideshow was made with AI assistance and human editing.

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