American workers have always been the backbone of our nation’s prosperity, driving innovation and growth through hard work and ingenuity. Yet as we step into 2026, rapid advances in artificial intelligence pose real questions about the future of employment. In a recent Fox Business segment, Wolfe Research chief economist Stephanie Roth broke down the latest inflation numbers while offering a sobering look at how AI could influence hiring and unemployment this year.
The discussion kicked off with the December 2025 Consumer Price Index data, released just yesterday by the Bureau of Labor Statistics. Prices climbed 0.3% from November, with the annual rate holding at 2.7%—a figure that shows inflation remains stubborn despite efforts to rein it in. Shelter costs led the way, jumping 0.4% and accounting for much of the monthly uptick. Food prices rose 0.7% over the month, adding to the squeeze on household budgets. Core inflation, excluding food and energy, came in at 0.2% monthly and 2.6% yearly, slightly cooler than some forecasts but still above the Federal Reserve’s 2% goal.
Roth pointed to these trends as part of the broader economic puzzle the Trump administration aims to address. With inflation lingering around 2.7%, families continue to feel the pinch from higher costs in essentials like housing and groceries. The administration’s focus appears set on curbing these pressures through pro-growth policies that prioritize American energy independence and reduced regulations to boost domestic production.
Shifting to the job front, Roth delved into AI’s growing role in reshaping the workforce. Analysts expect 2026 to mark a turning point where AI’s effects become more tangible.
“After the rise of AI video tools in 2025, analysts warn 2026 could bring visible job losses—especially in lower-level white-collar roles.” This shift might hit entry-level positions hardest, as companies integrate AI to streamline tasks like data entry, customer service, and basic analysis.
Hiring practices are already evolving under AI’s influence. “The number of job applications an average candidate sends has risen by 239% since ChatGPT’s release in 2022, according to global data collected.” Recruiters face a flood of AI-assisted resumes, making it tougher for genuine talent to stand out. Meanwhile, unemployment sits at 4.4%, with newer college graduates facing rates near 10%—a sign that AI is slowing entry into professional fields. “AI is not only slowing new college grad hiring, it’s also reducing the total number of jobs that require college.”
On the flip side, AI opens doors for new opportunities in tech, manufacturing, and skilled trades where human oversight remains essential. For America to stay ahead, investing in reskilling programs and prioritizing domestic AI development will be key. Policies that encourage companies to hire and train American workers—perhaps through tax incentives or apprenticeships—could turn this technological wave into a net positive.
As Roth’s analysis shows, 2026 demands vigilance. With inflation in check but AI on the rise, the path forward lies in harnessing innovation to strengthen, not undermine, the American dream. By focusing on homegrown solutions, we can ensure our economy remains the envy of the world.
