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Newsom Orders State Agencies to Plan AI Job Loss Mitigation

Published 21 May 2026

California Governor Gavin Newsom signed an executive order on Thursday directing state agencies to develop a policy framework aimed at mitigating potential job losses driven by artificial intelligence. The order positions California as the first major state to take preemptive action on AI-driven workforce displacement.

The directive tasks multiple agencies, including the Labor and Workforce Development Agency and the Government Operations Agency, with exploring a range of potential support measures. Key areas of focus include establishing severance standards for displaced workers, enhancing workforce training programs, and creating systems to track hiring and payroll trends as automation advances. The order also calls for studies on subsidized employment, cooperative business ownership, and how unions are negotiating over AI adoption.

In a statement, Newsom said the moment demands a reimagining of how we work and govern, adding that today is just the first step in creating a future of work that works for all. He framed the action as part of California's proactive approach to technological change.

The order comes amid growing anxiety over AI's impact on employment, underscored by...

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