California becomes the first state to launch a tool to monitor and track artificial intelligence’s impacts on the workforce

Tracking and monitoring AI impacts 

The California AI-Unemployment Tracker is a publicly available dashboard developed in partnership between the researchers at the California Policy Lab’s UCLA site and the California Employment Development Department. The tool is designed not only to inform policymakers but also to help Californians better understand how AI is intersecting with the workforce and the broader job market.

“The AI‑Unemployment Tracker provides us with a clearer picture of how AI is affecting working people and jobs, and where we need to focus support and training. By grounding our decisions in data, we can respond early and strengthen pathways into good jobs to ensure California’s workforce is able to adapt and thrive as technology evolves.” Stewart Knox, Secretary of the Labor & Workforce Development Agency

“AI is advancing quickly, and workers’ concerns about what that could mean for their jobs are real,” said co-author Till von Wachter, Professor of Economics at UCLA and Faculty Director of the California Policy Lab’s UCLA site. “This new tracker helps replace speculation with evidence, giving us a clearer understanding of what’s changing and how to best support affected workers.”

The tracker, which will be updated monthly, provides early indicators of possible AI‑related job displacement, allowing the state to proactively identify where interventions — such as job‑search support, retraining and upskilling opportunities, health‑coverage guidance, and other essential resources may be needed most.  

“The California AI unemployment tracker is a great tool for identifying the impacts and opportunities coming from rapidly developing technology,” said EDD Director Nancy Farias. “It will give us valuable insight into workforce trends so we can better connect Californians with the resources, training, and support they need to succeed.”

Initial data shows no evidence of rising unemployment from AI 

Paired with the tracker is a comprehensive analysis of the data, which at this time shows no evidence of rising statewide unemployment claims in AI-exposed occupations.

However, the data does demonstrate impacts to workers in high-exposure AI positions following the expansion of AI software available to the public. For example, claims from college-educated workers in occupations with high AI exposure increased after ChatGPT-3.5’s release in 2022, and workers in occupations with high potential AI exposure in the San Francisco Bay Area also experienced a  sustained increase. The data did not show large disproportionate increases by race, ethnicity, gender, or age, in the number of high-AI-exposure UI claimants. 

“Right now, we are not seeing evidence of large-scale AI-related layoffs in California’s labor market,” said co-author Dr. Ben Hyman, Senior Researcher at the California Policy Lab. “But we do see patterns in certain regions like the Bay Area, in certain tech-heavy sectors, and among highly AI-exposed workers with college degrees. It will be important to continue monitoring trends for those workers, as well as others, so that policymakers can respond appropriately.”

Protecting workers from AI disruption 

The report and database were released in response to the Governor’s first-in-the-nation executive order, which mobilizes state agencies, labor experts, economists, universities, and industry leaders to develop new policies, gather data, and identify early warning signs of workforce disruption — while ensuring workers share in the gains created by AI-driven productivity. 

This executive order is the third issued by Governor Newsom to help spur innovation, assess risk, and create stronger AI policy in California – which is guiding the nation in its comprehensive approach in creating commonsense guardrails balanced with opportunities to advance innovation in this growing sector. 

Leading the way in AI 

California is home to 33 of the top 50 private AI companies in the world, and no state has taken more aggressive action to strengthen the safety, security, and consumer privacy of technology and online platforms.

In 2023, Governor Newsom made California the first state to take action on Generative AI policy, announcing an executive order to both responsibly adopt this technology in state government and begin studying its risks. The Governor convened world-leading academic experts to draft the California Report on Frontier AI Policy, providing the state with policy recommendations that helped lead to the Governor’s signature on the first state legislation nationwide, the Transparency in Frontier Technology Act (Senate Bill 53, Wiener) to help ensure that this technology moves forward responsibly. The law has since been replicated and modeled in similar laws adopted in other states.

This adds to other protections signed by Governor Newsom to create strong protocols for child safety and protections against self-harm, crack down on sexually explicit deepfakes and require AI watermarking, protect performers’ digital likenesses, and prevent scams from AI-generated robocalls. In addition, it supplements the Governor’s March 2026 executive order, which strengthened civil rights and privacy in California’s procurement of AI technology and expanded California’s adoption of AI to improve government services.

Creating a stronger AI-ready workforce 

Since Governor Newsom took office, the state has supported more than 674,000 earn-and-learn training opportunities, including over 250,000 registered apprenticeships. The University of California’s Extension program serves over 300,000 people every year, and UC’s innovative new Degree Plus pilot combines a UC bachelor’s degree with skills-based certificates and paid internships to strengthen workforce readiness and connect students with employers. 

To further strengthen California’s workforce, the state has also invested nearly $750,000 in the California Workforce Association to develop a statewide AI workforce strategy that will help local workforce boards prepare workers for emerging job opportunities. This adds to the state’s other jobs training resources including skills development referrals, apprenticeship opportunities, and job search assistance and support, as well as work done through the California Workforce Development Board, the Employment Training Panel, and the University of California’s and CSU extension programs and the Community College System that support workforce development for all Californians.