World Bank jobs council urges 'crisis-era' employment support measures as IMF warns of AI ‘tsunami’ — SkimNews
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- IMF Managing Director Kristalina Georgieva warned AI is hitting the global labor market like a 'slow-moving tsunami,' with young graduates most at risk as routine entry-level jobs disappear.
- World Bank Jobs Council co-chair Tharman Shanmugaratnam called for making pandemic-era employment support a permanent structural policy to help young people secure their first jobs.
- World Bank President Ajay Banga stated the private sector must absorb 1.2 billion youth entering the workforce over the next 15 years, requiring governments to de-risk private capital and build enabling infrastructure.
- Georgieva estimated AI will affect 40% of jobs globally, with 60% exposure in advanced economies and 23% in low-income countries, though the latter face delayed impact due to slower AI adoption.
- Tharman Shanmugaratnam noted U.S. demand for graduates has declined for the first time in a century, with the college wage premium shrinking, risking a loss of trust in the future among youth.
- Georgieva said AI could boost growth by up to 1 percentage point in advanced Asia and 0.8 percentage point in emerging Asia, potentially offsetting losses from aging populations.
Why it matters: Young job seekers face shrinking entry points as AI eliminates routine roles, while governments must now permanently subsidize or incentivize hiring—a shift from temporary crisis response to structural economic policy. Without intervention, a generation risks long-term underemployment despite AI-driven growth.
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