At a recent panel, Kristalina Georgieva, Managing Director of the International Monetary Fund, described AI's impact on the labor market as a 'slow-moving tsunami,' emphasizing that young graduates are particularly vulnerable as traditional entry-level jobs diminish.
Singapore's President Tharman Shanmugaratnam echoed this sentiment, suggesting that governments should adopt 'crisis-era' support measures as standard policy to facilitate youth employment. He noted that the private sector, which creates 75% to 85% of jobs, must be incentivized to hire new graduates, especially as demand for such positions declines.
World Bank President Ajay Banga highlighted the urgency of this issue, projecting that 1.2 billion young people will enter the job market in the next 15 years, necessitating significant government action to support job creation. The IMF estimates that 40% of jobs globally may be affected by AI, with advanced economies facing a 60% exposure rate.
While AI has contributed to economic growth, particularly in advanced Asia, Shanmugaratnam warned that growth does not guarantee job creation, and without proactive measures, disparities in employment opportunities could widen. He stressed the importance of adapting education and training to prepare workers for the evolving job landscape shaped by AI