IMF Warns AI Could Threaten Youth Jobs as World Bank Calls for Crisis-Era Support

Artificial intelligence (AI) could reshape the global job market and create new challenges for young workers, International Monetary Fund (IMF) Managing Director Kristalina Georgieva warned on Monday, October 12, describing its impact as a “slow-moving tsunami”.

Speaking at a panel discussion, Georgieva said young graduates could be among the first to feel the effects as AI increasingly takes over routine and repetitive tasks that have traditionally provided entry-level employment opportunities.

She noted that these jobs often help young workers gain experience and progress into higher positions. As automation reduces such opportunities, graduates could face greater difficulties entering the workforce.

World Bank Calls for Greater Support for Young Workers

Singapore President Tharman Shanmugaratnam, who co-chairs the World Bank’s Jobs Council, urged governments to make crisis-era employment support measures a permanent part of their policies.

He pointed to initiatives introduced during the COVID-19 pandemic and the global financial crisis, arguing that similar measures could help young people find jobs amid changing labour market conditions.

World Bank President Ajay Banga highlighted the scale of the challenge, estimating that nearly 1.2 million young people would turn 18 over the next 15 years. He said the private sector, which accounts for an estimated 75% to 85% of jobs in many countries, would need to play a major role in providing employment opportunities.

Shanmugaratnam also pointed to declining demand for graduates in the United States, describing it as an unprecedented development in a century.

IMF Estimates 40% of Jobs Could Be Affected by AI

According to Georgieva, the IMF estimates that around 40% of jobs worldwide could eventually be augmented, downgraded or eliminated because of AI.

The estimated exposure is higher in advanced economies, at around 60%, compared with 23% in low-income countries. However, lower exposure does not necessarily mean poorer countries will avoid the longer-term consequences of AI adoption.

The figures highlight how AI could affect different economies and occupations, although the impact will vary depending on the type of work, the pace of adoption and the ability of workers to adapt.

AI Investment Continues to Drive Economic Growth

Despite concerns about employment, AI-related investment and trade have contributed to economic growth in several economies. Georgieva said these developments had helped support global expansion despite an energy supply shock.

“Love it, hate it, or fear it. It is here, and we are already seeing the first wave of impact,” she said.

As businesses increasingly integrate AI into their operations, demand for workers with digital and AI-related skills is also growing. Companies are looking for professionals who can work with emerging technologies and adapt to changing business requirements.

For young graduates, developing skills in AI, cybersecurity, data analysis and other digital fields could help improve their prospects in a changing employment landscape. However, the broader challenge remains ensuring that technological progress creates accessible opportunities for people entering the workforce.