World Bank Jobs Council Urges Permanent Youth Hiring Support as IMF Warns 40% of Jobs Face AI Disruption
Updated
Updated · CNBC · Oct 12
World Bank Jobs Council Urges Permanent Youth Hiring Support as IMF Warns 40% of Jobs Face AI Disruption
1 articles · Updated · CNBC · Oct 12
Summary
Singapore President Tharman Shanmugaratnam said governments should make Covid-era employment support permanent, using incentives for firms to hire fresh graduates as entry-level demand weakens.
Kristalina Georgieva warned AI is hitting labor markets like a "slow-moving tsunami," with young workers most exposed because routine starter jobs are being automated away.
The IMF estimates 40% of jobs worldwide will eventually be augmented, downgraded or eliminated by AI, with exposure at 60% in advanced economies and 23% in low-income countries.
Ajay Banga said 1.2 billion young people will turn 18 over the next 15 years and argued private capital—which already generates 75% to 85% of jobs—must absorb most of them.
Policymakers said AI is also lifting growth—by up to 1 percentage point in advanced Asia—but warned stronger output alone may not create enough jobs without retraining and more applied education.