Slowing U.S. job growth alongside rising labor productivity highlights how organizations are replacing hiring with automation and AI-driven systems. Government labor data shows job growth in 2025 fell to roughly 584,000 positions, while productivity rose nearly five percent in the third quarter, allowing output to increase without additional staff. According to CompTIA, demand for AI-related skills rose more than 100 percent year over year, even as overall tech employment declined. For MSPs, this signals a shift where customers rely less on internal teams and more on external providers to absorb operational responsibility when automated systems fail. Survey data from TechAisle indicates that small and midmarket businesses are redirecting technology spending away from basic digitization toward autonomous, outcome-driven systems. The research, based on responses from 5,500 firms, shows profitable growth and cost control as top priorities for 2026, with increased adoption of generative AI, agentic automation, and managed security services. At the same time, rising RAM and storage prices—driven by AI data center demand, according to TrendForce—are delaying PC refresh cycles and pushing workloads into cloud environments, changing where performance, security, and cost risks surface. Vendor signals remain mixed. Kaseya reported layoffs affecting five percent of its workforce, following earlier reductions, while TD Synnex and Samsung reported strong revenue growth tied to AI infrastructure, memory, and server demand. Distributors cite continued hardware refresh activity, yet repeated workforce cuts at vendors suggest internal cost corrections rather than demand collapse. For MSPs, this combination increases environmental complexity, with longer device lifecycles, higher component costs, and more heterogeneous platforms to support. Operational AI announcements further extend decision-making authority into automated systems. New healthcare, printing, and service desk tools embed AI into intake, routing, authorization, and workflow execution, often acting before human review. For MSPs and IT service providers, the central issue is not efficiency gains but accountability: when AI-driven processes misroute work, generate compliance errors, or escalate incidents incorrectly, responsibility frequently defaults to the operator. The episode underscores the need for clearer governance, pricing, and contractual boundaries as AI assumes functional authority inside managed environments. Four things to know today 00:00 Slowing Job Growth, Rising Productivity, and AI Adoption Shift Operational Responsibility to Providers 05:26 TechAisle Data Shows SMB Focus Moving From Digitization to Autonomous, Outcome-Driven Systems 09:19 Kaseya Cuts Staff as Distributors and Chipmakers Report Strong AI-Driven Demand 14:27 Operational AI Advances as Vendors Embed Automation Into Intake, Routing, and Authorization This is the Business of Tech. Supported by: https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship 💼 All Our SponsorsSupport the vendors who support the show: 👉 https://businessof.tech/sponsors/ 🚀 Join Business of Tech PlusGet exclusive access to investigative reports, vendor analysis, leadership briefings, and more. 👉 https://businessof.tech/plus 🎧 Subscribe to the Business of TechWant the show on your favorite podcast app or prefer the written versions of each story? 📲 https://www.businessof.tech/subscribe 📰 Story Links & SourcesLooking for the links from today’s stories? Every episode script — with full source links — is posted at: 🌐 https://www.businessof.tech 🎙 Want to Be a Guest?Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights: 💬 https://www.podmatch.com/hostdetailpreview/businessoftech 🔗 Follow Business of Tech LinkedIn: https://www.linkedin.com/company/28908079 YouTube: https://youtube.com/mspradio Bluesky: https://bsky.app/profile/businessof.tech Instagram: https://www.instagram.com/mspradio TikTok: https://www.tiktok.com/@businessoftech Facebook: https://www.facebook.com/mspradionews Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
