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Employment in AI-linked sectors is contracting: Over the last 3 months, AI-affected sectors posted an average monthly decline of -11,000 jobs. This includes roles in management consulting, graphic design, office administration, telephone call centers, computer systems, software publishers, and web search. Since mid-2023, there have been only 2 months with a net increase in employment in these sectors. By comparison, at its 2022 peak, employment in these industries increased by as much as +55,000 jobs per month. Furthermore, employers cited AI as the reason for 38,579 job cuts in May, the highest monthly total on record, according to Challenger Gray data. This marks the 3rd consecutive monthly increase since ~5,000 in February. The impact of AI on the labor market is becoming increasingly visible.