California launches tool to monitor and track AI's impact on the labor market

A first-in-the-nation tracker launched today in California offers one of the clearest pictures yet of how artificial intelligence may be affecting workers. The California AI-Unemployment Tracker links unemployment insurance claims with measures of occupational AI exposure to monitor labor market changes as they unfold.

Developed through a partnership with Gov. Gavin Newsom's office, the California Employment Development Department and the nonpartisan California Policy Lab at the University of California, the tracker is part of California's broader effort to better understand how AI is reshaping the workforce and prepare for future labor market changes.

"California has always been a place that embraces innovation while taking seriously the responsibility that comes with it,"Newsom said in a statement. "We're shaping the future - and charting the course for the nation. As AI advances, we aren't just watching from the sidelines; we're reimagining how we prepare California through strong governance and innovative policy. I thank our partners at the California Policy Lab for helping us lead the way."

A report prepared by the California Policy Lab at UCLA finds no evidence as of May 2026 of a statewide surge in layoffs among workers in highly AI-exposed occupations. However, early signs of disruption are emerging among specific groups of workers, industries and regions. Unemployment insurance claims rose among college-educated workers in occupations with high exposure to AI, as well as those in occupations with high AI exposure in the San Francisco Bay area.

"This tool helps us see early signals of AI-driven change as they happen, giving policymakers a chance to respond before disruptions spread," said co-author Till von Wachter, faculty director of the California Policy Lab at UCLA and a professor of economics. "As AI evolves, timely data will be critical to helping California stay ahead and adjust key workforce programs to meet the moment."

Read more at the California Policy Lab website.