The unemployment rate has risen to 4.3% as of August 2025, and worries of further labor market deterioration are mounting. The economy’s current pace of job creation is down to around 85,000 a month, a far cry from last year’s 168,000 per month. Heather Long, chief economist at Navy Federal Credit Union, warns, The labor market is showing signs of cracking .

Amid this, another concern looming over workers is that of artificial intelligence (AI) displacing humans in the job market. Companies advancing their AI technology intensify these fears. A 2025 AI Disruption Report based on a survey of 1,023 U.S. workers conducted by Resume Now echoes these fears. According to the report, 89% of employees feel threatened by AI’s potential impact on their jobs’ security, and 43% claim to have known someone who lost their employment due to AI’s inclusion into the workspace.

According to Keith Spencer, who authored the report, the way employers introduce AI can either build trust or create fear among their employees. The uncertainty stems from the lack of transparency regarding AI’s role in the business. A staggering 77% of employers now require or strongly encourage AI adoption, and those workers who resist AI integration risk losing their jobs, according to a report by AIResumeBuilder.com.

Employers adopt AI mainly for increased productivity, cost reduction, and the potential for a leaner staff. However, employees resist AI integration mostly due to the fear of being replaced, lack of trust in AI accuracy, and discomfort with learning the new technology.

The survey indicates that AI related training and resources are mostly being sought independently by workers (55%), implying an urgency on the part of employers to step up and guide their employees more effectively. They need to provide clear communication, training, oversight, and accountability measures to ease employee fears, otherwise, they risk further exacerbating the anxieties their workers already feel.

As the increasing fears around AI-driven job displacement add to the unemployment woes, fighting these insecurities calls for effective communication and support from the employers. Additionally, employees trying to the navigate precarious situation of layoffs may need to understand how to speak to someone at edd. Facing unemployment can be daunting, but there are ways to seek help and advice. Calling the Employment Development Department (EDD) of California can shed some light on the process. For those unsure about how to get through to EDD, eddcaller.com offers comprehensive tips and is a great resource for assistance.