
"The workers most vulnerable to AI-driven displacement are not job seekers. They are already on our payroll. And unless we act now, economic instability will follow."
"Tuition-assistance programs are the most immediate place to start. Too often treated as retention perks, they can be deployed far more strategically in this AI moment."
"State workforce and unemployment programs can also create room for retraining. In many cases, employers can reduce worker hours while employees maintain partial income support and use that time for training."
"States have powerful levers available. Through governors' reserve funds and incumbent worker training funds under the Workforce Innovation and Opportunity Act (WIOA), states can support workers who are still employed but increasingly vulnerable to AI-driven disruption."
AI is reshaping jobs across various sectors, leading to urgent proposals to address potential economic instability. The U.S. has substantial workforce funding, exceeding $250 billion annually, which can be better utilized. Employers can strategically redirect tuition-assistance programs towards skill development and retraining. State programs can also support reskilling by allowing reduced hours while maintaining income support. These measures can help workers transition into new roles before their current jobs are automated, minimizing unemployment time.
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