RedBalloon.work CEO Andrew Crapuchettes talks to Fox News Digital about the February jobs report and how artificial intelligence is disrupting hiring while boosting productivity.
The February jobs report revealed 92,000 job losses, but according to RedBalloon CEO Andrew Crapuchettes, the real economic meltdown isn’t just in the numbers — it’s in the technology.
Crapuchettes warns that invisible layoffs are occurring as artificial intelligence algorithms effectively remove qualified American workers from the applicant pool, creating massive layoffs that he says are exacerbating the 4.4% unemployment rate and short-term “economic pain.”
“AI is causing a lot of disruption in the job market right now,” Crapuchettes told Fox News Digital. “[Companies] they are using AI effectively and therefore employee productivity is increased… part of what AI does is drive more employee productivity. Businesses don’t need to immediately hire or let people go. And that will be a major disruption to the markets. “
“Overall, it’s still a very disappointing number. We would like to see the jobs report grow all the time,” he continued. “But there are many different things that cause this. It’s not just a topic that we see.”
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On Friday, the Department of Labor reported that employers shed 92,000 jobs in February. This figure was well below the expectations of economists polled by LSEG, who estimated that the economy would add 59,000 jobs. The unemployment rate was 4.4%, slightly higher than economists’ expectations of 4.3%.
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There were also major cuts in government wages, manufacturing, information, construction, transportation and storage, and health care employment due to the strikes.
“What happens is that job seekers use AI and they apply for about 100 jobs a day and their application letter looks perfect, and they clean their CV in the market,” explains Crapuchettes. “And guess what? AI likes AI-written resumes better. And the problem is that AI-written resumes make it to the top of the stack, and then bring those people in for an interview, and it turns out … That a perfect resume and a perfect employee are not the same thing.”
“AI is good at boring work, but actually being smart about a particular person is something that should be a human job,” he continued. “A lot of HR tech today is going to AI for everything, and that’s causing this kind of extraordinary disruption. So it’s even harder for people to get a job, because basically what’s happening is you’re taking a very sophisticated person … and typing it down on a piece of paper that we call a resume, and then the AI is making decisions based on that.”
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Crapuchettes admits that even at RedBalloon, AI has allowed his team to produce three times as much work without adding a single person — a small glimpse into the macroeconomic shift.
“I basically tripled my engineering department without adding headcount because of the way we’re using AI effectively. And that’s a good thing, but in the short term, those … a lot of engineers weren’t hired at RedBalloon because we’re using AI effectively,” he said.
The BLS data also showed that federal government employment has declined by 330,000 jobs, or 11%, from its peak in October 2024. Crapuchettes attributed this to the “handcuffs” being removed from the private sector, which he said has historically struggled to compete with government benefits.
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“I know that I have talked to employers in the last few years and they feel like they are always competing with the provincial government for talent… Because it was their money that they put into the government, and then they hire the people that they really need to be able to grow their business,” commented the CEO.
“It will be a temporary pain as you lose all those government jobs,” he said emphatically. “They lose that money, but as they enter the private sector, it will create economic activity that will be a long-term benefit to America.”
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His best advice for American workers facing a tough job market is to stay “AI-enabled,” arguing that even construction workers and truck drivers must use AI as a tool to stay afloat.
“I hate to get back on the AI bandwagon, but the truth is that the most common thing that has been requested in all jobs, all sectors in RedBalloon at the moment is AI-enabled workers. So employers are looking for people who are not afraid to find out how they can use AI to be more efficient and successful in their work. And obviously that sounds strange … Yes, to let those areas benefit from technology.”
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Eric Revell of FOX Business contributed to this report.
