U.S. companies that have tried to avoid hiring, citing economic uncertainty and the idea that AI can cover more work, are changing. Traditional large companies, as well as Big Tech firms, are moving to expand hiring.

The Wall Street Journal reported that large rail company CSX and Alphabet, the parent of Google, have recently presented plans to investors to increase hiring to meet growth targets and seize opportunities in new technology areas.

Some corporate executives say they need to add staff because of the costs of adopting AI and technical limits, and some companies are looking to rehire after layoffs, the WSJ reported.

Kristin Martin Anderson, chief operating officer at Booz Allen Hamilton, a management and IT consulting firm focused on the U.S. federal government and defense and intelligence agencies, said there is a need to speed up hiring.

Booz Allen Hamilton cut several thousand people last year as the Trump administration sharply reduced federal government contracts and required companies to prove the cost justification, the WSJ reported. As of June 30, the company had about 30,900 employees, down 7.5 percent from a year earlier.

For years, cutting headcount was seen among large companies as a way to accelerate growth. Many listed companies have reduced white-collar workers in that climate, but layoffs are now easing. Over the past several weeks, unemployment benefits paid in the United States have been at the lowest level since 1969, the WSJ reported, citing federal government data.

A shift in corporate views on what work AI can cover also influenced the move toward a slight increase in hiring.

Many companies stopped hiring entry-level workers on expectations that AI agents could replace them, but reality differed. Companies later realised AI alone is not enough and people are essential to work alongside AI, the WSJ reported.

Sarah Franklin, CEO of HR platform Lattice, said: "Having a coding agent does not mean not hiring engineers. Companies with AI sales agents also still need salespeople."

Franklin said many Lattice customers will return to hiring. She said they are particularly looking to increase hiring of junior employees, who have been seen as having a weaker presence because of AI.

Franklin said: "Demand for entry-level employees is very big. Companies are now realising they need talent with the capability to use AI skilfully. They need creative new hires who are not bound by conventional thinking. They are people just entering the workforce, so the wage burden is relatively smaller."

The recent rise in hiring is also appearing outside white-collar jobs. Tool maker Snap-on plans to add staff to expand its business, and CSX decided to gradually increase train and engine service staff over the coming months as part of a response to rising demand. For other parts of the company, it plans to use technology to offset natural declines in staffing from retirements or job changes. CSX staffing is still down from a year earlier.

More companies are increasing hiring, but few are ramping up sharply. Still, demand remains strong for certain types of jobs. Anat Ashkenazi (Anat Ashkenazi), Alphabet CFO, said: "Alphabet will continue hiring in core investment areas such as AI and cloud computing." Software firm ServiceNow wants to hire more field sales staff who meet customers directly to seize opportunities in growth areas such as cybersecurity, the WSJ reported.