Item 5. Draft Recommendation: Preparing Austin's Workforce for Artificial Intelligence — original pdf

Backup

. RECOMMENDATION TO COUNCIL Economic Prosperity Commission Recommendation Number: [YYYYMMDD-XXX]: Preparing Austin's Workforce for Artificial Intelligence WHEREAS, the Austin metropolitan area entered 2026 with ~1.41M nonfarm jobs and 3.4% unemployment, and its occupational mix pairs the region's largest group, office and administrative support at 12.4% of employment, with a computer and mathematical workforce at nearly twice the national concentration; and WHEREAS, published exposure research and 2025-26 payroll evidence show AI changing tasks and hiring first in clerical, customer support, business and financial, and early-career technical occupations, including a ~20% national employment decline for software developers aged 22 to 25 since late 2022, while broad job loss is not visible in top-line labor data; and WHEREAS, office and administrative support workers combine the region's highest AI exposure with the lowest measured adaptive capacity, and median rent absorbs ~41% of that group's annual mean wage, so even moderate reductions in hours or hiring pose economic-security risk to lower- buffer households; and WHEREAS, data center and electrical infrastructure buildout is generating demand for electricians, mechanical and cooling, controls, and network trades, the construction supersector grew 5.0% over the year to April 2026, and these trades offer durable non-degree pathways with annual mean wages of $55.6K to $59.4K; and WHEREAS, evaluated workforce programs in other U.S. jurisdictions, including randomized evidence from San Antonio and New York, indicate that transitions succeed when training is tied to verified employer demand, participants are supported through to completion, results are measured by wage replacement rather than placement counts, and reporting requirements are set at the outset; and WHEREAS, the City Council's resolution of April 24, 2025 (agenda item 55) directed attention to AI oversight, workforce considerations, and digital equity, and the Commission's analytical report, Impact of Artificial Intelligence on Austin Residents (July 2026), attached as backup, provides the supporting baseline, assessment, and recommendations. NOW, THEREFORE, BE IT RESOLVED that the Economic Prosperity Commission recommends that the Austin City Council direct the City Manager to: 1. Publish a quarterly Austin AI labor market dashboard that includes an early-career module tracking hiring and unemployment claims for workers under 30 in the most exposed occupations; . 2. Establish a transition pathway for administrative and customer support workers with Workforce Solutions Capital Area, Austin Community College, public libraries, and major employers, reported on wage replacement rather than placement counts; 3. Expand registered apprenticeship and pre-apprenticeship capacity in the trades tied to data center and electrical infrastructure buildout, reserving slots for workers transitioning from exposed occupations; 4. Protect entry-level career pathways through paid, structured entry roles within City departments and an employer compact on entry-level hiring in software, data, and financial operations; 5. Adopt a workforce review for significant City artificial intelligence procurements, applying a redeployment-first standard and annual public reporting, consistent with the April 2025 resolution; and 6. Embed applied AI-tool fluency within existing workforce credentials, with open access for residents whose employers do not provide tools. BE IT FURTHER RESOLVED that the Commission recommends these actions be designed and evaluated according to the conditions identified in its report: training tied to verified employer demand, support sufficient to reach completion, wage replacement as the reported outcome, dedicated intermediary capacity, and outcome reporting established at the outset. BE IT FURTHER RESOLVED that the Commission transmits its analytical report, Impact of Artificial Intelligence on Austin Residents: Labor Market Baseline, AI Impact Assessment, and Policy Recommendations (July 2026), as backup supporting this recommendation. Seconded By: Date of Approval: Motioned By: Vote: For: Against: Abstain: Off the dais: Absent: Attest: _____________________________________________