Live Index

The AI Job Displacement Index

Built to answer one question: how much pressure is AI putting on employment right now?

Updated every 6 hours using Federal Reserve employment data, O*NET task-level AI exposure scores, and AI-scored news signals.

38.8
38.8Displacement Pressure

0 = severe displacement  ·  100 = strong growth

Amazon cuts more jobs months after mass layoffs — reflecting ongoing corporate restructuring that disproportionately targets roles susceptible to automation and AI-driven efficiency gains at one of the world's largest technology and logistics employers.

Hard Data

Federal Reserve · 70%

39.3

Sentiment

News & layoffs · 30%

37.5

Signals

scanned this run

11

010050
38.8
Displacement Pressure

Hard Economic Data

Layer 1 · 70% weight · sourced from FRED (Federal Reserve Economic Data)

Methodology →
Unemployment Rate
4.3%
0.0%
2026-04
Job Openings
6.9M
-56.0K
2026-03
Initial Claims
211K
+12.0K
2026-05
Nonfarm Payrolls
159M
+115.0K
2026-04

90-Day Score History

Federal Reserve hard data (green) vs news sentiment (orange) — when they diverge, a turning point may be near

Full chart →

AI Analysis: The signal landscape leans negative, with multiple layoff events across industries and geopolitical shocks threatening labor markets abroad. A notable positive counterweight comes from Blackstone's projection of a blue-collar hiring boom tied to data center expansion, and an economist's argument that AI displacement fears may be overstated relative to prior trade shocks. However, continued Amazon job cuts and persistent concerns about non-college-educated men falling out of the labor force reinforce structural vulnerabilities in the US labor market.

Leading indicator: The mix of rolling layoffs, geopolitical uncertainty, and cautious corporate headcount management suggests modest upward pressure on unemployment claims over the next 30 days, with hiring likely to remain selective and concentrated in infrastructure and technical roles rather than broad-based job growth.

Latest Market Signals

Layer 2 · 30% weight · AI-scored news and market sentiment

2 bullish1 neutral12 bearish

Reported AI Displacement Events

Layer 3

Verified layoffs where companies explicitly cited AI as the reason

Full analysis + ratio chart →

Jobs cut (AI-attributed)

340,414

since Jan 2023

Distinct events tracked

51

companies reporting AI cuts

AI share of total layoffs

0.5%

of FRED total layoffs (latest)

Most affected sector

technology

214,458 jobs cut

CiscotechnologyMay 2026

Cisco explicitly cited AI-driven restructuring as the reason for cutting approximately 4,000 jobs.

4,000

jobs cut

PayPalfinanceMay 2026

PayPal announced plans to cut 4,760 jobs (20% of workforce) over 2–3 years. New CEO Enrique Lores framed it as a technology and culture reset, stating the company is "aggressively adopting AI" in development processes to compete with Stripe, Adyen, and Apple Pay.

4,760

jobs cut

CoinbasefinanceMay 2026

Coinbase cut 700 employees (14% of workforce) as CEO Brian Armstrong restructured the company for the "AI era" — replacing pure managers with AI-native "player-coach" roles and creating AI-agent pods that can replace entire multi-person teams.

700

jobs cut

Most At-Risk Occupations

Scored 0–100 by AI task coverage — what AI can do today, not a job-loss forecast · 96 US roles tracked

All 96 occupations →

What is the DisplaceIndex?

The DisplaceIndex is a composite labor market indicator built to answer one question: how much pressure is AI putting on employment right now?

Every 6 hours, our pipeline pulls ten Federal Reserve economic series — spanning unemployment, job openings, claims, quits, layoffs, hours worked, and sector employment - and scores them against historical baselines. Simultaneously, our scoring engine analyses current news headlines and layoff announcements to produce a real-time sentiment layer.

The two layers are blended 70/30 into a single score from 0 to 100. High scores mean a growing, resilient job market. Low scores indicate accelerating displacement pressure.

Frequently Asked Questions

What is the AI Job Displacement Index?

The DisplaceIndex is a composite economic indicator (0–100) that measures the real-time risk of AI-driven job displacement. It combines hard labor market data from the Federal Reserve (FRED) with AI-powered sentiment analysis of market signals to produce a regularly updated snapshot of displacement pressure.

How is the index calculated?

The index combines two layers: Layer 1 (70%) uses hard FRED data - unemployment rate, job openings, initial jobless claims, and nonfarm payrolls - scored against long-run historical distributions. Layer 2 (30%) uses our proprietary scoring engine to assess sentiment across news headlines and labor market signals. The composite score ranges from 0 (severe displacement) to 100 (strong growth).

How often is the data updated?

The DisplaceIndex pipeline runs every 6 hours. It fetches the latest available FRED economic series and scans current news headlines and layoff announcements to compute the updated index score.

What do the index labels mean?

Scores of 75–100 indicate Strong Growth (expanding job market). 60–74 is Cautious Growth (stable but moderate risk). 40–59 is Transitional (mixed signals). 25–39 is Displacement Pressure (notable job market stress). Below 25 is High Displacement (severe pressure from automation and layoffs).

Is this a prediction or a current snapshot?

The DisplaceIndex is a current snapshot, not a forecast. It reflects the state of the labor market and AI displacement signals right now, based on the most recently available data. Leading indicators like jobless claims and job postings do provide some forward-looking signal, but the index is descriptive rather than predictive.

Powered by FRED (Federal Reserve), BLS & proprietary AI scoring — full methodology →