World Bank Jobs Council Urges Permanent Support for Youth Amid AI Disruption Warnings
Policymakers at the World Bank's Jobs Council are shifting focus from debating whether artificial intelligence will disrupt jobs to addressing how best to manage its impact. IMF Managing Director Kristalina Georgieva warned that AI is affecting labor markets like a 'slow-moving tsunami,' with 40% of global jobs eventually affected, particularly impacting young graduates. Singapore President Tharman Shanmugaratnam urged governments to make crisis-era support measures permanent and incentivize firms to hire new graduates. World Bank President Ajay Banga emphasized the need for private sector involvement in creating jobs for an estimated 1.2 billion young people entering the workforce over the next decade, calling on governments to de-risk investments through infrastructure development and policy reform. While AI is already boosting growth in some economies by lifting output despite global challenges like energy supply shocks, its disruptive effects are most visible in tech sectors where demand for graduates has declined. The discussion highlights growing concerns about youth unemployment amid aging populations and the urgent need for structural labor market reforms to ensure economic stability.
Topics: Artificial Intelligence Employment Global Economy Policy Recommendations