The news: Advertising industry, public relations, and related services employment decreased by 800 jobs in September, per delayed data from the Bureau of Labor Statistics. The decline underscores mounting pressures across the ad sector.

The trend: Despite some gains in the last four months, overall advertising employment is trending downwards due to fundamental industry shifts.

• AI is making waves across industries—and advertising is especially impacted. Thirty-seven percent of ad industry professionals are concerned about job displacement related to the rise of AI, per the Interactive Advertising Bureau, a concern exacerbated by many brands pivoting away from agencies and toward automation.
• Economic uncertainty and the possibility of a recession are playing a part. Agencies are looking to cut budgets in response to financial turbulence like tariffs, and hiring is no longer a priority, especially as AI fulfills the responsibilities of junior hires. Twenty-seven percent of marketing decision-makers are already cutting budgets to adapt to a shaky economy.
• Consolidation is leading to layoffs. Over one-quarter (29%) of ad agency professionals believe agency consolidation will negatively impact their jobs, reflecting widespread concerns amid major moves like the imminent IPG-Omnicom merger.

What professionals can do: As industry employment declines, ad professionals need to focus on skill development, adaptability, and networking.

• Upskilling and reskilling will be competitive differentiators. Amid the rise of AI and automation, employees should focus on developing skills that complement the technology. Those who are fluent in AI will thrive in a rapidly changing industry.
• Those who embrace the change and remain flexible will thrive. The industry is experiencing a period of structural shifts; employees should be open to new roles and responsibilities as the requirements of advertising companies fundamentally change.
• Networking will ensure opportunities. As entry-level and internship opportunities decline, especially for junior workers, employees and hopefuls should actively network within the industry. Building relationships will uncover hidden opportunities and offer support during uncertainty.