Artificial Intelligence Anxiety in the Global Labor Market
Officials from the International Monetary Fund and the World Bank called for permanent support measures against the transformation driven by artificial intelligence in the labor market.
International Monetary Fund Managing Director Kristalina Georgieva stated that artificial intelligence is affecting the global employment market like a slow-moving tsunami. Meanwhile, Singaporean President Tharman Shanmugaratnam urged that crisis-era support measures be made permanent to help young people find jobs.
Artificial Intelligence Creates a Tsunami Effect
International Monetary Fund Managing Director Kristalina Georgieva stated that artificial intelligence has hit the global labor market like a slow-moving tsunami.
It was emphasized that young graduates taking their first steps into the job market are being negatively affected by this situation and rank first among the impacted.
Crisis-Era Measures Must Be Permanent
Singaporean President Tharman Shanmugaratnam stated that crisis-era support measures should be made permanent in order to increase the participation of youth in employment.
It was noted that policies implemented during the COVID-19 pandemic and the global financial crisis should now be treated as a part of structural policies.
Global Labor Force and Demographic Pressures
World Bank President Ajay Banga conveyed that 1.2 billion young individuals will turn 18 over the next 15 years, and the private sector will need to employ the majority of these youths.
According to International Monetary Fund data, it is projected that approximately 40 percent of jobs worldwide will be enhanced, diminished, or eliminated due to artificial intelligence.
Demand for Graduates Declines in the Tech Sector
Tharman Shanmugaratnam stated that for the first time in a century in the U.S., the demand for university graduates is decreasing and the wage premium for a university diploma is shrinking.
It was stated that if necessary steps are not taken, graduates will lose skills for more than a year and confidence in the future will be undermined.
Regional Disparities and Opportunities
World Bank President Ajay Banga stated that while artificial intelligence may cause some disruptions in developed countries, it holds major opportunities for middle-income and lower-middle-income countries.
It was stated that small-scale artificial intelligence applications have high potential to create jobs and productivity in these countries.
Relationship Between Economic Growth and Employment
It was emphasized that artificial intelligence investments and trade contributed to global growth remaining around 3 percent this year.
On the other hand, it was noted that despite good growth in China, India, and Southeast Asia, the rate of creating new employment remains weak.