Economists warn that the federal safety net remains dangerously unprepared for potential AI-driven job losses, even as workers increasingly fear technological displacement. The nearly century-old unemployment system, providing up to 26 weeks of benefits in most states, is unlikely to cover many workers most at risk from automation, labor experts say.

Job-retraining programs designed for earlier eras of displaced workers haven't been updated for the current threat. Republicans in Congress last year made it more difficult for unemployed Americans to receive food assistance and health care benefits. In Florida, workers qualify for a maximum of $275 per week for just 12 weeks.

Recent graduates appear likely to be at the front lines of AI job disruptions, but most can't receive unemployment insurance because they haven't worked long enough to pay into the system. Many economists also think AI is likely to push more people into gig and contract work, which the existing system doesn't cover. Senator Ron Wyden is working on a bill to provide income support to workers displaced by AI pursuing career retraining.

The Trump administration has dismissed suggestions that AI threatens jobs, with Kevin Hassett of the White House National Economic Council insisting the technology will make workers more productive. "Our systems are really built for a very different time," said Maria Flynn of Jobs for the Future.