AI Displacement Tracker

79.4 Serious

As of June 2026 (2026-06) · Updated Jul 23, 2026

Multiple AI displacement signals are well above normal. Capability growth, layoffs, or job market contraction are at levels that suggest widening workforce impact.

Score Zones

Crisis > 80

Extreme displacement pressure across multiple dimensions.

Serious 65–80 Current

Widening workforce impact — several signals well above normal.

Elevated 50–65

Pressure building — capability growth or layoffs above baseline.

Normal 35–50

Near the 2023–2024 baseline. No broad displacement signals.

Healthy < 35

Low displacement pressure. Stable job market for exposed occupations.

Five Components

The tracker combines five weighted components that capture different AI capability, adoption, and labor-market observations. The composite does not infer a causal sequence among them. See the full analysis for the hypothesis connecting these observations to household financial distress.

Tracker History

The tracker starts in early 2019, when METR began publishing capability benchmarks. It stayed in the Normal–Elevated range through 2023, then accelerated sharply in 2024–2025 as AI capability growth, adoption, and layoffs all surged simultaneously.

How the Tracker Connects to the ADI

The tracker combines capability, adoption, and labor-market observations in one contemporaneous score. The American Distress Index separately measures household financial distress. The proposed capability-to-adoption-to-displacement-to-default sequence is a hypothesis to test, not a causal result of this tracker.

Stage 1
Capability

AI systems can handle longer, more complex tasks. METR time horizons grew from 3.5 minutes (the GPT-4 baseline in March 2023) to 1044h 48m.

Stage 2
Adoption

Businesses integrate AI into production. Census BTOS shows 10.0% of firms using AI, up from 3.7% in two years.

Stage 3
Displacement

Workers lose jobs or hours. 140K layoffs explicitly attributed to AI in 2025, with tech openings down 53%.

Stage 4
Default

Households experiencing a job or hours loss may miss payments. The tracker does not establish that a specific layoff caused a later default or that the ADI will move with a fixed lag.

The workers most exposed to AI — clerical, customer service, data entry, earning $30–55K — overlap heavily with FHA borrowers and subprime cardholders. Read the full AI displacement analysis for the demographic bridge.

Understanding the Tracker

Frequently Asked Questions

What is the AI Displacement Tracker?

The AI Displacement Tracker is a 0–100 composite score that follows AI workforce displacement across five dimensions: AI-attributed layoffs, tech sector job openings, youth unemployment, business AI adoption, and AI capability growth. It is scored on a Z-anchored scale against a 2023–2024 baseline — the tracker’s own scaling, independent of the ADI, which ranks each input against its own history.

How does the tracker relate to the ADI?

The tracker summarizes AI capability, adoption, and labor-market signals. The ADI separately measures household financial distress. A possible lagged relationship is the research hypothesis; this contemporaneous tracker does not establish causation or forecast a later ADI reading.

Why is the tracker at Serious level?

The current Serious classification reflects the weighted combination of the five component readings for June 2026. The tracker summarizes those concurrent signals; it does not establish that AI caused a labor-market outcome or predict a later ADI reading.

Does a high tracker reading mean mass unemployment?

Not directly. The tracker measures displacement pressure — the combination of capability growth, adoption, and early labor market signals. Whether this translates to broad unemployment depends on retraining speed, new job creation, and policy response. The tracker follows what is happening, not what will happen.

Where does the data come from?

All five components use public federal data or publicly accessible research: BLS (unemployment, JOLTS), Challenger Gray & Christmas (layoff announcements), Census Bureau BTOS (adoption survey), and METR (AI capability benchmarks). No proprietary data, no paywalls.

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