WACO, Texas (KXXV) — For many people, AI in the Central Texas workforce can seem like a scary thought but a Waco economist points to something as simple as the invention of the wheel to potentially predict a positive workforce future integrated with AI.
A new report out this month by the outplacement and career coaching services firm, Challenger Gray & Christmas, takes a look at U.S. October job numbers and said layoffs hit the “Highest Level for the Month Since 2003 as Hiring Slows to Lowest Point in 14 Year."
The report said "U.S.-based employers announced 153,074 job cuts in October, up 175% from the 55,597 cuts announced in October 2024.
It is up 183% from the 54,064 job cuts announced one month prior".
Dr. Ray Perryman is the President and CEO of the economic analysis firm The Perryman Group located here in Waco.
“Historically challenger’s been doing this for years and their numbers are certainly highly regarded and looked at in the industry. We are seeing a lot of lay offs right now" he said.
The report said "In October, the sector announced 33,281 job cuts, up sharply from 5,639 in September. For the year, Technology firms have announced 141,159 job cuts, up 17% from the 120,470 announced through the same period in 2024."
Adding, “Technology continues to lead in private-sector job cuts as companies restructure amid AI integration, slower demand, and efficiency pressures.”
As AI expands in the lone star state, Governor Greg Abbott, announced on Friday that Google's $40 billion investment in the state as part of Google's "Investing in America."
The investment is expected to "boost cloud and AI infrastructure, with the development of data center facilities, programs to strengthen energy capacity and affordability, and workforce training" in the state, according to the Governor's office.
The governor's office said, this is "Google's largest investment in any state in the U.S” and Gov. Abbot said “Texas is the epicenter of AI development.”
“The $40 billion investment we announced today will bring three new data center campuses to the state to power the new era of AI innovation. This investment will create thousands of jobs, provide skills training to college students and electrical apprentices, and accelerate energy affordability initiatives throughout Texas," CEO of Google and Alphabet, Sundar Pichai, said.
But since the inception of AI, many people have worried about AI taking our jobs away.
Here in Central Texas, Dr. Perryman said AI in our workforce is “fairly small” adding AI actual means more jobs for us humans.
“Over time it means more workers" said Dr. Perryman.
Let’s dive into what he means.
Dr. Perryman refers to a term called “creative destruction" which is a term coined by Joseph Schumpeter in 1942's "Capitalism, Socialism, and Democracy" and the term has been used by economist for decades.
Dr. Perryman points to history as a way of the future such as the invention of the wheel or the creation of the computer or internet as all three have seemingly took out workers during their introduction to the workforce, but now all of them have employed millions of people all across the globe and across many industries.
“The creative tends to be bigger than the destructive but it takes some time and we’re in that transition now," said Dr. Perryman.
