A recent opinion piece in Deseret News highlights how U.S. firms are scaling back hiring plans due to tariff-related uncertainties and rising input costs. Approximately 25% of companies have reduced hiring expectations for 2025, with tariffs now being a top concern among executives.
Simultaneously, the rapid adoption of artificial intelligence is leading to significant workforce reductions. For instance, PayPal has cut over 4,500 employees in the past two years while developing a chatbot that now handles the majority of its 52 million annual customer-service tickets. Companies like Duolingo are implementing “AI first” policies, affecting hiring and performance reviews, and signaling a shift towards substituting AI for roles traditionally held by contract workers.
This convergence of economic uncertainty and AI proliferation is resulting in the automation of human work rather than its augmentation. Entry-level positions, which often serve as stepping stones to higher-paying jobs, are being automated, creating a catch-22 for new workers who need experience to get a job but can’t get a job to gain experience.
In this evolving landscape, technical skills alone may no longer suffice. The article emphasizes the growing importance of noncognitive or “soft” skills—such as communication, critical thinking, collaboration, adaptability, and emotional intelligence—which enable individuals to contribute effectively within teams and adapt to changing work environments.
