The news: US ad employment continued its downward trend in June, with jobs in advertising, public relations, and related fields decreasing by 700 jobs, per the Bureau of Labor Statistics’ monthly employment report. The decrease marks the seventh consecutive month of ad industry job losses, per Ad Age.
- Ad agency employment specifically increased in May, but only slightly, growing by 200 jobs to reach 218,900. This followed a decrease of 1,000 jobs in April.
- But jobs in advertising and related industries overall fell to 489,200 in June, following a previous loss of 1,500 ad market jobs in May. While the BLS hasn’t reported ad agency employment for June yet, the overall decrease indicates a potential decline in ad agency staffing.
- The BLS often updates previously reported employment figures in subsequent months.
What’s causing the shift: Losses of this volume have historically aligned with recessions, but Ad Age notes the decline could relate to broader ad industry structural changes.
- The rise of AI technology in the ad industry is causing widespread changes and contributing to a culture of uncertainty. Thirty-seven percent of US ad industry professionals have job displacement concerns related to AI adoption—and not without reason, as major platforms pivot away from agencies and toward automation, with genAI replacing core agency functions and cutting costs.
- Ad industry consolidation is rising—and employees are feeling the pressure. Twenty-nine percent of ad agency workers believe industry consolidation will negatively impact their jobs, causing more than one-third of agency employees to actively consider leaving the industry.
- And broader economic uncertainty is still playing a role in the shift. Agencies are slashing ad budgets and deprioritizing hiring, with 27% of marketing decision-makers reportedly cutting back budgets because of tariffs and economic turbulence.
Our take: Rather than a temporary slump, declining ad employment is marking a structural shift that risks prioritizing cost-cutting and short-term efficiency over human insight and brand-building expertise.
Without human oversight, even the most optimized, efficient campaigns risk falling flat with consumers. Ad agency employers must avoid sidelining the human capabilities—like storytelling and strategic intuition—that differentiate brands in crowded markets.