International Monetary Fund (IMF) Managing Director Kristalina Georgieva warned that artificial intelligence could disrupt young workers' traditional career paths by reducing routine entry-level jobs. Those jobs help young workers gain experience and advance professionally. Reuters reported that Georgieva made the remarks during a panel discussion in Bangkok, Thailand, on Monday, as part of the IMF-World Bank Annual Meetings.
Georgieva estimated that AI could affect around 40% of jobs worldwide, including roles that are enhanced, downgraded or eliminated. Georgieva said the share rises to 60% in advanced economies and stands at 23% in low-income countries. An IMF study of the U.S. labor market found that 10% of jobs already require higher-level AI skills, which command better pay. Georgieva said routine, repetitive jobs were shrinking. Georgieva said lower-paying positions were growing in data centers and services.
The IMF study found a positive net employment impact in the area examined. However, Georgieva said the gains were concentrated in lower-paying jobs. Georgieva said young workers normally enter routine, repetitive jobs and then advance through the ranks. Georgieva expressed doubt that young workers would want a coffee-shop barista job as their professional future if those entry-level career opportunities disappear.
Georgieva urged policymakers to study labor-market changes and rethink education. Georgieva urged policymakers to prepare for a future in which workers must continually update their skills. Georgieva said acquiring one skill and relying on that skill throughout life was no longer sustainable. Georgieva described lifelong learning as a necessity. Georgieva also raised concerns about government revenue if AI shifts economic activity away from labor toward capital. Georgieva questioned what governments would tax if the labor market relied less on labor and more on capital.
A Goldman Sachs research study in August found that AI-related labor-market pressures were particularly pronounced among entry-level workers. The study found that industries more exposed to AI had experienced weaker growth in job openings since 2022.
IMF Warns AI Could Displace 40% of Jobs, Threatening Young Workers' Career Paths
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Summary
IMF Managing Director Kristalina Georgieva warned AI could displace 40% of global jobs, with a 60% impact in advanced economies. Young workers face disrupted career paths as routine entry-level jobs shrink. The U.S. already sees 10% of jobs requiring advanced AI skills, while data center roles expand. Georgieva called for updated education systems, citing risks to CFT efforts and shifts in liquidity and crypto markets. Government revenue patterns may also change due to AI-driven transformations in job structures and economic activity.
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