White House National Economic Council Director Kevin Hassett has pushed back against the fears that artificial intelligence is destroying jobs, saying the technology is instead helping businesses grow and hire more people. Speaking on Fox Business, Hassett said, “AI is creating jobs right now and the people who are using it are booming. It’s not a negative employment story at all.”

This statement is coming at a time when major tech companies including Amazon, Meta and Oracle have announced large-scale layoffs, with several firms openly saying AI-driven automation is helping them operate with fewer employees.

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Hassett says AI is helping firms grow faster

Hassett explained that AI is making companies more productive and efficient, comparing it to using AI assistance in chess. “Well, if you just look at what equity markets are doing right now, what’s happening to people’s salaries, you can see that AI is making it easier for people to run firms better,” he said. “You can run your firm better if you have AI, and that in the end is going to redound to everybody’s benefits.”

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He also dismissed concerns that recent college graduates are struggling to find work because of AI. “One of the talking points that we’ve been hearing over the last few months is, oh, well, the new college graduates, they’re not getting jobs because of AI,” Hassett said. “The most recent data shows the unemployment rate for new college graduates has plummeted. In other words, they’re being hired in droves.”

Small businesses using AI are ‘booming’

According to Hassett, internal data reviewed by the White House showed that small businesses adopting AI tools are seeing major growth. He said companies that hired firms to help integrate AI into their operations saw their revenues double over the last year.

“They’re becoming big businesses. They’re stealing business from big businesses, both here and abroad,” he said.At the same time, Hassett claimed businesses that failed to adopt AI remained stagnant while AI-driven firms gained market share. “And so AI is creating jobs right now, and the people who are using it are booming,” he added.

Layoffs continue across the tech industry

Hassett’s opinion but really contradicts with the ongoing wave of layoffs across the global tech industry in 2026. According to layoff tracker True Up, more than 134,000 to 144,000 tech workers have lost their jobs globally in the first five months of the year alone, as companies redirect spending toward AI infrastructure, cloud computing, data centers and advanced chips.

Block announced plans earlier this year to cut nearly 4,000 jobs, while Amazon reportedly eliminated around 30,000 roles. Oracle cut roughly 20,000 jobs as it shifted resources toward hyperscale AI cloud infrastructure.

Meta also reduced about 8,000 positions while reorganising thousands of employees into AI-focused divisions. Other companies including Microsoft, Cisco and Coinbase have also carried out workforce reductions tied to AI restructuring and automation efforts.

Debate grows over AI’s real impact on jobs

The growing use of AI has led to concerns that companies are replacing workers to cut costs and improve efficiency. Industry experts have warned that middle-management, customer support and traditional engineering roles are becoming increasingly vulnerable as firms prioritise AI investments. Some critics have also accused companies of “AI washing” — using AI as a justification for cost-cutting and restructuring measures. Research from Gartner has also suggested that large-scale layoffs linked to AI spending have not yet consistently produced stronger financial returns for companies.