Trending Now - U.S. Workers Show Increased Job Security Amid AI Concerns

WHO:

ADP Research, a provider of labor market analysis

Nela Richardson, ADP chief economist

Radouane Khiri, full-stack web developer at US Mobile

Block, a payments company that owns Square and Cash App

Frank Flight, Citadel Securities

Jim Reid, Deutsche Bank

WHAT:

U.S. employees are experiencing increased job security, with low rates of worker turnover.

Job turnover hit a nine-year low in January 2026 at 5.8%.

Block announced layoffs of nearly half its staff, attributing the cuts to AI tools.

Block's shares surged more than 15% following the announcement.

The unemployment rate in January 2026 was 4.3%, about half a percentage point higher than late 2023.

The Citrini Research report speculated about a potential economic catastrophe due to AI, predicting U.S. unemployment could exceed 10% by 2028.

WHERE:

United States

Block operates Square and Cash App, which are associated with the tech industry.

WHEN:

Data reported on March 2, 2026.

Job turnover statistics are from January 2026.

The unemployment rate data is from January 2026.

The Citrini Research report was referenced as having gone viral earlier in the week prior to March 2, 2026.

WHY:

Workers are clinging to their jobs amid significant economic uncertainty and fears of AI displacing jobs.

Block's layoffs were directly linked to the adoption of AI tools that changed operational needs.

HOW:

The trend of "job hugging" is characterized by employees remaining in their positions due to economic uncertainty and AI's impact on job availability.

AI tools are being used to automate tasks, leading to fewer entry-level positions, as noted by Khiri.

In a recent report from ADP Research, it was revealed that U.S. employees are experiencing increased job security, with job turnover hitting a nine-year low of 5.8% in January 2026. However, the tech company Block announced layoffs of nearly half its staff due to the adoption of AI tools, which has led to a surge in their shares by more than 15%. Amid these changes, the unemployment rate stood at 4.3% in January, raising concerns about the potential for economic catastrophe as speculated in a viral Citrini Research report earlier this week, predicting U.S. unemployment could exceed 10% by 2028.