California Governor Orders First-in-the-Nation Plan to Address AI’s Impact on Jobs

California is home to 33 of the world’s 50 largest privately held AI companies, making it a hub of AI innovation and one of the places most likely to experience automation-driven job restructuring first. In 2025, the state invested nearly $1.6 billion through California Jobs First and trained more than 142,000 workers. The new policy will therefore be critical to whether the benefits of technology are shared by companies and workers.

On May 21, 2026, Governor Gavin Newsom signed the nation’s first executive order focused on AI’s impact on employment. It directs the California Labor and Workforce Development Agency, Employment Development Department and GO-Biz to work with academics, labor unions and industry on a strategy. Within 90 days, they must produce an impact study and launch a jobs dashboard. Within 180 days, they must review the WARN Act, severance pay, unemployment insurance and career-transition training, with recommendations including an AI training handbook due by October 15.