economy
January 23, 2026
Young will suffer most when AI ‘tsunami’ hits jobs, says head of IMF
Kristalina Georgieva says research suggests 60% of jobs in advanced economies will be affected, with many entry-level roles wiped out
TL;DR
- AI is expected to significantly impact the labor market, with 60% of jobs in advanced economies and 40% globally potentially affected.
- Young people may find it harder to secure entry-level jobs as AI eliminates many traditional roles.
- The middle class could be negatively affected as their pay may decrease without AI-driven productivity boosts.
- There is a significant concern about the insufficient regulation of AI and the need for safe and inclusive development.
- Unions advocate for fair distribution of AI's productivity gains and for businesses to discuss AI tool implementation with workers.
- AI's growth could be hindered by mistrust between rival economies and tariff barriers, impacting capital and data availability.
- Widening global inequality is a concern, with AI exacerbating existing disparities.
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