World Bank jobs council urges 'crisis-era' employment support measures as IMF warns of AI ‘tsunami’
IMF Chief Kristalina Georgieva warned AI is hitting the global labor market like a “slow-moving tsunami,” with young workers entering the job market the most exposed.
TL;DR
- Policymakers are moving from debating AI's job impact to warning about its disruptive potential.
- Young graduates are first in line to be affected by AI-driven job market changes.
- There is a call for governments to make 'crisis-era' support measures permanent tools for youth employment.
- Governments should incentivize firms to hire fresh graduates due to declining demand for entry-level positions.
- AI's disruption could affect about 40% of jobs globally, with higher exposure in advanced economies.
- AI is also a driver of economic growth, potentially boosting output in advanced and emerging Asian economies.
- AI-induced job displacement may occur 'task by task,' allowing time for worker adaptation and training shifts.