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A functional unemployment insurance system for today’s economy would cover more workers, including part-time, gig, and temporary workers, and would provide benefits that actually allow families to survive while searching for new work.
For millions of workers, the conversation about artificial intelligence and the future of work is no longer theoretical. It is already showing up in layoffs, hiring freezes, shrinking departments, and growing anxiety about whether the paycheck families rely on today will still exist tomorrow.
But the most important question is not simply which jobs AI will eliminate. It is whether workers will have any real support when those jobs disappear.
While policymakers, executives, and economists debate which industries will thrive and which occupations will disappear in the age of AI, working Americans are focused on more immediate concerns: paying rent, affording groceries, covering childcare, and figuring out how they would support their families if their income suddenly vanished.
Workers are right to worry, because the system meant to help them through job loss is already failing to meet this moment.
While we may not be able to control every change AI will bring, we can decide whether workers will face those changes alone.
America’s unemployment insurance system was built for a different era entirely, one in which AI was nonexistent. It was built for an era that assumed stable full-time employment, long-term employer relationships, and relatively predictable layoffs. Today’s economy looks nothing like that.
Millions of workers now move between part-time jobs, contract work, temporary positions, caregiving responsibilities, and periods outside the workforce entirely. But unemployment insurance rules still exclude many of those workers from receiving help when they need it most.
Today, only about 1 in 4 unemployed workers receive unemployment benefits nationwide. In some states, fewer than 13% received support at all. And even when workers do qualify, benefits are often too low and too short-lived to keep families financially stable while they search for new work.
The result of this broken system is families scrambling to avoid financial free fall: draining savings accounts, falling behind on rent, or taking the first low-paying jobs they can find because they can’t afford to wait for something better.
That disconnect is already visible. While the number of unemployed workers has climbed sharply over the past year, unemployment claims have remained relatively flat—not because people are unaffected, but because so many workers are locked out of a system that no longer reflects the realities of modern work.
The first wave of AI disruption is already here. As adoption of these technologies increases, more workers will cycle between jobs, more families will navigate periods of unemployment, and more people will be forced to rebuild after losing work through no fault of their own.
And those burdens will not fall equally. Women—especially Black women, who are disproportionately represented in clerical and administrative jobs—are among the workers most vulnerable to displacement. Workers of color already face persistently higher unemployment rates because of structural inequities in the labor market. Yet when they lose work, they are significantly less likely to receive unemployment benefits and the economic stability those benefits are supposed to provide.
That reality is colliding with an already fragile economy. Data from the New York Federal Reserve shows that college graduates are now experiencing recession-level rates of unemployment. Over the last year, unemployment among young college graduates averaged 5.5%—the highest sustained level outside the brief peak of the Covid-19 pandemic since the aftermath of the Great Recession.
These are graduates who were told that if they worked hard, earned a degree, and applied themselves, they would find stability and opportunity. Instead, many are entering a labor market defined by uncertainty and shrinking opportunities, all while facing a weakening safety net.
That is why modernizing our unemployment systems must be part of the AI conversation.
A functional unemployment insurance system for today’s economy would cover more workers, including part-time, gig, and temporary workers. It would provide benefits that actually allow families to survive while searching for new work. It would make it easier, not harder, for eligible workers to receive support. And it would actually be prepared to withstand economic downturns.
Unemployment insurance should be understood for what it truly is: economic infrastructure.
Just as roads and bridges help goods move through the economy, unemployment insurance helps people move through economic change without falling into crisis. A strong UI system gives people the stability to search for good jobs instead of being pushed into the first low-wage position available. It stabilizes families, communities, and local businesses during periods of disruption.
The age of stable employment is fading. More workers will inevitably face periods of transition, disruption, and job loss in the years ahead.
While we may not be able to control every change AI will bring, we can decide whether workers will face those changes alone. Modernizing unemployment insurance is not simply a matter of compassion. It is a matter of economic readiness.
It was Trumpian silly to think that mass deportation of immigrants was going to lead to a huge wave of jobs for native born workers.
It probably is not a surprise to most people outside the Trump administration, but it looks like their mass deportation has not done much to help the native-born workforce. The unemployment rate for native-born workers in May was 4.2%. That’s up from 4.1% last May, and 3.8% in May of 2024, when Joe Biden was in the White House, and immigrants were taking all the jobs.
This outcome shouldn’t be a big surprise to people who have given the issue much thought. Most of the jobs that immigrants do are not ones that native-born workers are lining up for. Few people born in this country want to work on farms picking lettuce or tomatoes or in meat-processing plants. It’s the same story with low-paying jobs such as home health care aides or custodians.
It was Trumpian silly to think that mass deportation of immigrants was going to lead to a huge wave of jobs for native born workers. In fact, as much research has shown, immigrant workers tend to act as complements to native-born workers, not substitutes.
This is perhaps most clearly seen in the construction industry, where close to 30% of the workforce are immigrants. The availability of lower-cost immigrant labor allows many projects to go forward that would not otherwise. In this way, it is a net job gainer for native-born workers. This is likely true in many other areas as well.
To be clear, this doesn’t mean that immigrants never lower the wages of native-born workers. There are likely cases where workers on H1-B visas have reduced the wages of workers in some occupations, even if the effect of the program in general may still be positive. I am also confident that if we eased the immigration barriers to foreign-trained doctors, the pay of our doctors would not still be twice as high as in other wealthy countries, thereby lowering healthcare costs.
Also, negative impacts may not be reversible. There is now solid evidence that opening trade to China cost the US millions of manufacturing jobs. That doesn’t mean that putting up tariffs will bring the jobs back. Half a century ago, the meat-packing industry had many good-paying union jobs that were later taken by low-paid immigrants. Chasing away immigrants now will not bring those good-paying jobs back.
Anyhow, the results to date are clear. Trump’s mass deportation has not led to any sort of windfall for native-born workers. As the Trumpers say, “Trump was wrong about everything.”
"Republicans in Congress and President Trump are focused on spending $1 billion a day on a needless war with Iran that is already jacking up prices for Americans," noted one expert.
President Donald Trump made clear in a new interview with Politico that he either doesn't understand or won't accept the US public's response to his and Israel's war on Iran, which they're waging while Americans face rising unemployment and gasoline prices on top of high costs for other essentials, from groceries to housing.
According to Politico White House bureau chief Dasha Burns:
Speaking in a phone call Thursday, Trump was entirely on offense. He brushed off worries about the impact of the Iran war on gas prices and US ammunition reserves, and he insisted that the military onslaught was popular with voters. Many recent public polls show the opposite is true, although a survey released Thursday by Fox News found voters have mixed opinions on Iran...
"People are loving what's happening," Trump said. "We're taking out a threat to the United States of America, major threat... and doing it like nobody's ever seen before."
A roundup of recent polling collected and published Friday by Strength in Numbers data journalist G. Elliott Morris shows roughly half of Americans disapprove of the war on Iran, while only 38% approve.

Despite the polling, the GOP-controlled Congress has refused to rein in Trump's assault on Iran. Democratic US Sen. John Fetterman (Pa.) and four Democrats in the House of Representatives—Congressmen Henry Cuellar (Texas), Jared Golden (Maine), Greg Landsman (Ohio), and Juan Vargas (Calif.)—voted with nearly all Republicans this week to block a pair of war powers resolutions.
In the interview with Politico, Trump described the Iranian military as "decimated," and said that "we'll work with the people and the regime to make sure that somebody gets there that can nicely build Iran but without nuclear weapons."
As of Thursday, the Iranian government put the death toll at 1,230 people, including around 175 killed in a reported "double-tap" strike on a girls' elementary school. Israel has denied responsibility and top US officials have only said they're looking into it. A New York Times analysis concluded that the United States was "most likely to have carried out the strike," which killed mostly children. According to Reuters, US investigators also believe that American forces were behind the bombing.
Separately, the Times reported that two boys' schools—one elementary and one middle—southwest of Tehran "appeared to have been damaged on Thursday during the bombing campaign being conducted by the United States and Israel," though unlike with the earlier attack in Minab, "there were no immediate reports of deaths or injuries."
In addition to discussing Iran, Trump told Politico that "Cuba's going to fall, too," but "they want to make a deal." He also addressed Venezuela, whose president was recently abducted by US forces and replaced with a deputy who agreed to let Trump control the nationalized oil industry; his frustration with Ukrainian President Volodymyr Zelenskyy, who continues to combat a Russian invasion; and his recent spat with the artificial intelligence company Anthropic, which the president "fired" because of its refusal to let the Pentagon end the AI firm's policies against autonomous killer robots and mass surveillance of Americans.
With Trump focused on various conflicts abroad, Americans are contending with some of the consequences, including the impact on petroleum. Business Insider reported Friday that "the national average price for a gallon of regular gasoline climbed to $3.32 on Friday, according to AAA—that's an 11.4% increase from last week's price and the highest level since August 2024."
Meanwhile, the US Bureau of Labor Statistics revealed Friday that the US economy lost 92,000 jobs last month.
"Trump's reckless economic agenda has forced the labor market into the negative, threatening the livelihoods of American workers," responded Alex Jacquez, a former Obama administration official who's now chief of policy and advocacy at Groundwork Collaborative. "As the president piles on blanket tariffs and oil prices soar, today's report confirms he's sent the economy straight into a stagflation spiral."
The new jobs data came after the Wall Street Journal reported Wednesday that a record number of US workers are raiding their retirement savings. The top reasons for the surge in 401(k) withdrawals were avoiding eviction or paying off medical expenses.
Americans are facing an even more dire healthcare situation this year, due to Medicaid cuts in Trump and congressional Republicans' so-called One Big Beautiful Bill Act—which also gave the rich more tax breaks—as well as their refusal to extend expired Affordable Care Act subsidies that helped tens of millions of people pay for health insurance.
"We should all be concerned about the slowing economy we've seen in the second Trump administration," Angela Hanks, a former Department of Labor official who's now chief of policy programs at the Century Foundation, said Friday. "The economy lost thousands of jobs this month including in healthcare and social services, the main sectors previously propping up the labor market."
"Healthcare, childcare, and manufacturing—sectors Americans rely on—all lost jobs last month with no plan from the Trump administration on how to fix it," Hanks added. "Meanwhile, Republicans in Congress and President Trump are focused on spending $1 billion a day on a needless war with Iran that is already jacking up prices for Americans."