IMF Warns of AI-Driven Job Displacement, Urges Governments to Support Workers
The International Monetary Fund (IMF) has cautioned that artificial intelligence (AI), along with changes in the types of skills required by job positions, is changing how the global labor markets will be occupied by workers and employers, which requires immediate action by governments to assist both groups in their transition.
Historically, every advancement in technology has impacted how workers occupy job positions; however, the rapid advancements in AI technology and the use of digital tools have resulted in an increased rate of disruption, as well as providing both opportunities and obstacles. Recently conducted research by the IMF using millions of job postings indicates that there has been a dramatic increase in the demand for new skills, such as digital literacy, technical skills, and management skills, globally. At present, approximately 10% of job advertisements in advanced economies indicate that one or more new skills are required to occupy those positions, while the corresponding figure for developing countries is roughly 5%.
The worldwide labor market is being reshaped by automation and artificial intelligence as traditional job duties/skills are being replaced by artificial intelligence AI. Professional and technical job categories will experience the most significant growth in employability. Middle-tier occupations will continue to decline, whereas entry-level workers will see the most significant negative impact due to job loss or reduced employability as a result of the implementation of artificial intelligence and automation technology.
Almost 40% of all workers worldwide are currently vulnerable to job displacement caused by AI (artificial intelligence). Consequently, the IMF believes that it is essential to develop and implement lifelong learning policies for people to continue acquiring job-related skills over their working lives and to support the development of a workforce capable of adapting to the new requirements of the workforce. Finland, Ireland, and Denmark are performing particularly well in their efforts towards workforce development. There are also many other countries continuing to improve upon their efforts with respect to workforce development and investing in workforce and social protection, and proactive evolution to encourage more inclusive growth.
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