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.
0 = severe displacement · 100 = strong growth
“Tech layoffs are at their worst since 2023, and AI is a big reason — this signal directly identifies AI as a primary driver of job displacement across the tech sector, representing the clearest and most impactful automation-driven displacement risk in this dataset.”
Hard Data
Federal Reserve · 70%
43.7
Sentiment
News & layoffs · 30%
50.0
Signals
scanned this run
11
Hard Economic Data
Layer 1 · 70% weight · sourced from FRED (Federal Reserve Economic Data)
90-Day Score History
Federal Reserve hard data (green) vs news sentiment (orange) — when they diverge, a turning point may be near
AI Analysis: The labor market presents a sharply mixed picture: macro indicators are genuinely encouraging, with 178,000 jobs added, unemployment dipping to 4.3%, and jobless claims falling — all positive signals for workers. However, these gains are tempered by accelerating tech-sector layoffs driven explicitly by AI adoption, and a provocative claim from a prominent VC that companies are 75% overstaffed and using AI as cover for large-scale workforce reductions. The cluster of smaller company layoffs adds further downward pressure on worker sentiment.
Leading indicator: Over the next 30 days, the labor market is likely to remain superficially stable at the macro level, but underlying AI-driven displacement in tech and knowledge-work sectors is expected to intensify. Job seekers in technology roles face elevated risk, while the broader unemployment rate may hold steady as displaced workers shift to lower-wage service roles.
Latest Market Signals
Layer 2 · 30% weight · AI-scored news and market sentiment
- News+0.80
- News+0.70
- News+0.10
- News+0.10
- I asked ChatGPT to tweak my diet to lose fat and gain muscle. It spotted the habits holding me back.News+0.10
- News+0.00
- News+0.00
- News+0.00
- News+0.00
- News+0.00
- News-0.70
- News-0.80
Reported AI Displacement Events
Layer 3Verified layoffs where companies explicitly cited AI as the reason
Jobs cut (AI-attributed)
316,354
since Jan 2023
Distinct events tracked
43
companies reporting AI cuts
AI share of total layoffs
0.2%
of FRED total layoffs (latest)
Most affected sector
technology
201,458 jobs cut
Block (Square and Cash App) cut 4,000 roles across its fintech divisions, citing AI automating payment processing, fraud detection, and customer support.
4,000
jobs cut
Amazon cut 16,000 fulfilment-centre and logistics roles as next-generation AI robotics and demand-planning systems displaced warehouse workers.
16,000
jobs cut
Pinterest cut 780 employees (~15% of workforce), citing AI content moderation and recommendation tools reducing the need for human operators.
780
jobs cut
Most At-Risk Occupations
Scored 0–100 by AI task exposure · higher = more displacement risk · 96 US roles tracked
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.