California Governor Gavin Newsom signed an executive order on 21 May 2026 aimed at better protecting workers from possible job losses caused by artificial intelligence. With the labour market changing rapidly and AI systems becoming increasingly capable, the US state wants to put political safeguards in place at an early stage. The aim is to enable technological innovation while also mitigating social risks.
Several state agencies are expected to develop analyses, early-warning systems and policy recommendations over the coming months. These will focus, among other things, on the impact of AI on employment, possible changes to labour law, social protection, and programmes for retraining and further education. The state will also examine incentives for companies that retain employees rather than replace them with AI. Newsom has also criticised the fact that tax systems often make it more attractive for companies to invest in automation than to preserve jobs.
The initiative comes against a backdrop of growing concern about AI-driven disruption in the labour market, including large-scale job cuts at companies such as Meta and Oracle. Newsom has argued that traditional unemployment insurance may not be sufficient to deal with possible structural changes. This view echoes warnings from experts such as Anthropic co-founder Dario Amodei, who has suggested that office-based jobs could decline significantly within just a few years. California is particularly exposed to these developments: the state is home to many leading AI companies and also plays a central role in AI patents and start-up activity. The political challenge is to protect workers effectively without stifling innovation. Critics warn that overly strict rules could drive companies and developers out of California.
With this political response to the possible labour-market effects of increasing AI use, California could assume a pioneering role internationally. The executive order is considered one of the first political initiatives of its kind in the United States. While the EU has already introduced comprehensive AI regulation through the AI Act, labour-market protection against the effects of AI is still at an early stage there as well. In Germany, Federal Labour Minister Bärbel Bas (SPD) recently emphasised above all the need for clear political rules, targeted skills development and effective public institutions. According to studies, AI is more likely to reshape work in Germany than simply reduce the number of jobs. The key challenge, she argued, is therefore to equip employees with the right skills in good time and prevent social disadvantages.
By Ida Kandler