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31% of U.S. employees were engaged at work during the first half of 2026, according to Gallup, the same figure as 2025. 18% are actively disengaged.

The flat line is still a real problem. Engagement peaked at 36% in 2020, and Gallup estimates each percentage point works out to roughly 1.6 million U.S. workers. Do the math, and we’re down about 8 million engaged employees since then.

The price tag is real too. Gallup pegs the cost of disengagement to the U.S. economy at $2 trillion a year in lost productivity. Younger workers, hybrid employees, and managers have taken the steepest hits since 2020, which tracks with what I hear from clients: the people managing the most change are the ones burning out fastest.

Here’s the part of Gallup’s midyear report that caught my attention. Employees report a little more clarity about what’s expected of them at work: 49% strongly agree they know what’s expected, up from 47% a year ago. It’s a small gain, and still well below the 61% peak Gallup recorded in 2015.

At the same time, fewer employees feel their opinions matter or feel connected to their company’s purpose. Workers understand the what better than they did a year ago. The why is still slipping.

AI is the variable everyone wants credit for, and Gallup’s data won’t hand it to them for free. Access alone does little for engagement. Organizations that roll AI out with a real plan, clear expectations, and managers who actively coach the transition see meaningfully better numbers.

Employees at companies that have adopted AI report engagement six points higher than employees whose companies haven’t. Among AI users, people who use it weekly are eight points more engaged than occasional users. Employees whose companies provide a clear AI implementation plan report engagement 15 points higher than those without one.

Manager support produces the widest gap in the whole report. Employees who say their manager actively supports AI adoption sit at 48% engagement, against 30% for employees without that support. Stack frequent AI use, a clear plan, and active manager support together, and engagement climbs to 53%, well above the national average.

Productivity claims need the same scrutiny. Only 17% of frequent AI users rate AI’s effect on their productivity at the highest level. The share jumps to 50% once you add an engaged employee, frequent use, manager support, and a clear strategy. AI alone falls well short of the productivity gains companies are banking on.

For HR leaders, I read this as confirmation of something we’ve covered before: rolling out AI without a management plan is a change management failure waiting to happen. Employees need to know when to use it, where human judgment still rules, and how their work gets measured. Skip that step and adoption turns into guesswork, which lines up with what Glassdoor found earlier this year about AI anxiety and collapsing worker trust.

For managers, the finding cuts against a common assumption. AI raises the stakes on the manager’s job rather than shrinking it, because managers translate company strategy into what an employee actually does on a Tuesday. If you’re building out that management bench right now, our direct hire team fills that kind of role often, and it’s worth getting right before the AI rollout, not after.

Amazon Just Cut Jobs Inside the AI Team Built to Define Its Future

Amazon laid off employees inside its Artificial General Intelligence group this week, according to Reuters, even as the company keeps calling AI one of its top priorities. Amazon hasn’t disclosed how many roles were cut. Employees under Adeeb Shanaa, who leads AGI data services, and Vishal Sharma, who leads AGI information, reported being affected.

Amazon has cut jobs in smaller waves throughout the year already. The company reduced its corporate workforce by about 16,000 positions in January, and this week’s cuts are part of that continuing pattern.

An Amazon spokesperson framed the move as narrowing focus, not retreat: “We’ve been building large AI models for several years, and it remains one of the most important things we’re working on.” The spokesperson added, “We’re sharpening our focus on the initiatives that matter most for customers, so we can move faster on what counts. That focus means some difficult decisions, including eliminating some roles within parts of our AGI organization.”

Leadership inside the AGI group has already turned over once this year. Rohit Prasad, who led AGI efforts, left at the end of 2025. AGI Lab head David Luan left in February. Amazon folded AGI into a broader organization under Senior Vice President Peter DeSantis, alongside silicon development and quantum computing, back in December.

I covered Amazon’s AI-driven layoffs back in March, and this latest round fits the same pattern: heavy AI investment paired with restructuring inside the very teams building it. A role inside an AI group offers no built-in guarantee of security. Amazon just proved that at one of the highest-profile AI operations in the country.

For employers, the read here is about discipline. Companies are getting more selective about where they put headcount, even inside strategic units, and leadership will cut roles when it believes resources belong elsewhere. If your hiring plan touches AI talent this year, that selectivity should shape how you staff around it, whether that means contract-to-hire flexibility through our staffing services or a targeted direct hire search.

For job seekers, AI work remains one of the strongest long-term paths available. Working inside an AI group by itself doesn’t guarantee job security. Adaptability and specialized skills matter more than the label on the org chart, and our open roles page is a good place to see where that demand is actually showing up right now.

A closeup of Pete Newsome, looking into the camera and smiling.

About Pete Newsome

Pete Newsome is the President of 4 Corner Resources, the staffing and recruiting firm he founded in 2005. 4 Corner is a member of the American Staffing Association and TechServe Alliance and has been Clearly Rated's top-rated staffing company in Central Florida for seven consecutive years. Recent awards and recognition include being named to Forbes' Best Recruiting and Best Temporary Staffing Firms in America, Business Insider's America's Top Recruiting Firms, The Seminole 100, and The Golden 100. Pete is a freqent conference speaker on the topic of AI's impact on jobs, and he hosts Cornering The Job Market, a weekly show covering real-time workforce trends, analyisis, and news. Connect with Pete on LinkedIn