The US Industries Cutting Jobs Fastest as AI Adoption Rises
Aerospace and defense is the industry where AI adoption and layoffs are climbing fastest together. With AI cited in about 21% of US job cuts announced so far in 2026, we ranked the US industries shrinking their workforce and funding AI at the sharpest pace.
19 US industries · January–September 2026 vs 2025 · October 2026
How the industries compare
To determine which US industries are shrinking their workforce fastest as they adopt AI, we analyzed 19 industries using job-cut announcements for January through September 2026 and the same period of 2025. The table shows the top 10 by AI Adoption & Job Cut Score.
| Industry | Change in job cuts, 2025→2026 | Job cuts per 1,000 workers, 2026 | AI adoption change, 2025→2026 | AI spending change, 2025→2026 | AI Adoption & Job Cut Score |
|---|---|---|---|---|---|
| Aerospace/Defense | 132.1% | 8.04 | 66.7% | 36.4% | 97.89 |
| Transportation | 189.8% | 9.30 | 51.2% | n/a | 96.46 |
| Chemical | 108.0% | 5.84 | 66.7% | 36.4% | 92.17 |
| Food | 76.4% | 16.79 | 66.7% | 36.4% | 84.63 |
| Industrial Goods | 52.5% | 11.77 | 66.7% | 36.4% | 78.91 |
| Construction | -27.6% | 0.47 | 85.5% | n/a | 78.26 |
| Automotive | -6.5% | 20.18 | 66.7% | 36.4% | 64.87 |
| Electronics | -15.0% | 5.60 | 66.7% | 36.4% | 62.92 |
| Insurance | 101.1% | 2.65 | 33.6% | 22.6% | 58.24 |
| Technology | 53.8% | 32.57 | 30.0% | 11.7% | 43.42 |
Higher = job cuts and AI adoption rising together faster
1. Aerospace and defense
Aerospace and defense ranks first among US industries cutting jobs fastest as AI use increases. Announced layoffs more than doubled between January and September, reaching 6.4K. That is a 132.1% increase on the 2,786 announced over the same months a year earlier. At the same time, the industry uses AI 66.7% more often, and the funding for artificial intelligence projects and tools increased by over a third.
- Change in job cuts, 2025-2026: +132.1%
- Job cuts rate, 2026: 8.04 per 1K workers
- AI adoption change, 2025-2026: +66.7%
- AI spending change, 2025-2026: +36.4%
- AI Adoption & Job Cut Score: 97.9/100
2. Transportation
Transportation takes second place, as the number of eliminated positions jumped from 15.3K to 44.4K through September, an even steeper rise than in aerospace and defense, at 189.8%. Transportation accounts for 7.8% of all US job cuts this year, but AI adoption among its businesses rose from 8.6% to 13%. That is a 51.2% increase over the previous year.
3. Chemical
Chemical lands third among industries letting go of real people and funding AI. Announced job cuts rose to 5.3K so far this year, more than doubling the previous layoffs. The chemical industry makes up 0.9% of all US job cuts this year. In that sector, AI adoption grew 66.7%, and the share of businesses paying for AI rose 36.4%.
4. Food
Food ranks fourth. Announced layoffs rose from 16.8K to 29.7K between January and September. That is a 76.4% increase on the same months a year earlier. Food accounts for 5.2% of all US job cuts this year, behind transportation's 7.8%. In this sector, 61.1% of businesses now pay for AI, up from 44.8% a year earlier.
5. Industrial goods
The industrial goods sector completes the top five. Announced job cuts climbed from 8,499 to almost 13K over the first nine months of the year. That is a 52.5% increase, or 4,458 more cuts. The field accounts for 2.3% of all US job cuts this year, meaning 1 in 50 specialists losing jobs in America are getting laid off from this exact sector.