BANGKOK — Global financial leaders are shifting their focus from debating the inevitability of artificial intelligence disrupting the workforce to implementing concrete strategies to mitigate its impact. During the IMF Annual Meetings, both the International Monetary Fund and the World Bank issued stark warnings about the scale of job displacement, particularly for young workers.
IMF Managing Director Kristalina Georgieva described the current climate as a “slow-moving tsunami” hitting global labor markets. She estimated that approximately 40% of jobs worldwide will eventually be augmented, downgraded, or eliminated. While advanced economies face a higher exposure rate of about 60% compared to 23% in low-income countries, Georgieva cautioned that poorer nations are not necessarily safer; rather, AI adoption has simply not yet reached them.
Georgieva emphasized that young graduates are the most vulnerable demographic. “People to worry about, first and foremost, are young people that are coming into the labor market,” she said. Traditionally, newcomers entered the workforce through routine, repetitive roles before advancing, but these entry-level positions are increasingly at risk.
Singapore President Tharman Shanmugaratnam, who co-chairs the World Bank’s Jobs Council, called on governments to transform temporary emergency measures into permanent structural policies. Drawing parallels to support systems established during the COVID-19 pandemic and the global financial crisis, Shanmugaratnam argued that these tools should no longer be viewed as crisis-only interventions.
The former finance minister highlighted a concerning trend in the United States, noting it is the first time in a century that demand for graduates has declined. He warned that without intervention, the wage premium for college degrees is shrinking, causing young people to lose trust in their economic future.
World Bank President Ajay Banga addressed the sheer volume of new workers entering the market, estimating that 1.2 billion young people will turn 18 over the next 15 years. Since the private sector already generates between 75% and 85% of jobs in most countries, Banga stated that it must absorb the majority of this workforce.
Banga urged governments to facilitate this by building infrastructure, setting favorable policies, and “de-risking” private capital to encourage large-scale investment. He stressed that while AI has been a major driver of growth this year—helping maintain global expansion near 3% despite energy supply shocks—the benefits must be broadly shared.
“Love it, hate it, or fear it, it is here,” Georgieva concluded, underscoring the urgency for coordinated policy action to protect vulnerable populations as the AI revolution accelerates.
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