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Labor commissioner: AI changing jobs; committee hears about trust fund and training plans
Summary
The committee heard from Labor Commissioner Denise Thomas about AI-driven labor changes, interagency training (TN Works), rapid response for layoffs and the state unemployment trust fund; the bill to extend the department's sunset advanced 14–0.
Commissioner Denise Thomas of the Tennessee Department of Labor and Workforce Development told the House Government Operations Committee that while AI is causing disruption in some sectors, overall labor force participation in Tennessee has increased and the department is focusing on training and coordination to mitigate job loss.
Thomas described TN Works, a six‑agency workforce collaborative that coordinates training and higher education partners to address changing skills needs. She said the department is using rapid‑response teams to help workers displaced by layoffs connect to new employment and is commissioning studies and training frameworks to prepare workers for emerging roles.
On fiscal questions, Thomas addressed the unemployment trust fund and provided figures during questioning, and she said the department has not seen widespread failures by employers to give required layoff notices but will review records if members request it. Lawmakers asked whether the department is receiving WARN notices and about the fund's balance; Thomas referenced recent additions in 2025 and an interest figure discussed with her CFO during the hearing.
The committee later voted 14–0 to advance House Bill 1576, which extends the department's sunset review to 2030, sending the bill to the calendar and rules committee.
