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IMF director warns AI could leave young workers without a way up the career ladder By Katherine Li You're currently following this author! Click to unsubscribe from email alerts. Kristalina Georgieva told a panel that said while AI investment is helping sustain global growth, it doesn’t necessarily mean better career prospects for young people.
Roslan RAHMAN / AFP via Getty Images AI could help keep the global economy growing while pulling the first rung of the career ladder out from under young workers. That’s the warning from International Monetary Fund managing director Kristalina Georgieva, who described AI as a “tsunami” for jobs during a conversation in Bangkok, where Thailand is hosting the IMF–World Bank Annual Meetings from October 12–18. Georgieva told a panel on Monday that while AI investment is helping sustain global growth, a stronger economy doesn’t necessarily mean better career prospects, especially for young people.
"You have those that build the infrastructure for AI, and many of them are in Asia, including Thailand," Georgieva said. "So that shift in higher gear is what is keeping the world economy growing at 3% — around 3% — despite the fact we are being dragged down by the energy supply shock." The IMF estimates that AI will affect about 40% of jobs worldwide, rising to 60% in advanced economies, with some jobs enhanced, others downgraded, and some eliminated. "And when we look at this, what we recognize is that the people to worry about first and foremost are young people who are coming into the labor market," Georgieva said.
"Normally, they would get into these routine, repetitive jobs and then grow up the ranks," Georgieva said. "But if they're gone, I don't think any young person wants to be a barista in a coffee shop, as you know, [their] professional future." LinkedIn executive Aneesh Raman has previously described the career ladder in the age of AI as a “climbing wall,” requiring sideways moves rather than linear promotions. An HR strategist has also recently told Business Insider that it's time to start hiring for soft skills and capabilities instead of whether someone could make a pivot table.
Georgieva said the government would need to rethink taxation and education as AI changes the job market. "Traditionally, governments would generate revenues by taxing mostly people. Well, if AI changes the structure of the labor market and then there is less labor, more capital, what do we tax?" Georgieva said.
"Get governments to recognize they have a huge responsibility to rethink how education should be done in the world of AI," Georgieva added, "And recognize that no more we can acquire a skill and hold on to it for our life, and that lifelong learning is actually a paramount necessity." Read next Katherine Li You're currently following this author! Click to unsubscribe from email alerts. Katherine Li is a reporter on Business Insider's West Coast business news team.
She covers career, the future of work, and how AI is changing hiring practices and workplace trends. Previously, she was a newsroom fellow who wrote international breaking news and produced newsletters for Semafor. Before that, she wrote about climate policies for The Lever, covered the AAPI community for the SF Chronicle as a freelancer, and wrote about the 2019 Hong Kong protests as an intern for The New York Times.
She is an alumna of the Graduate School of Journalism at UC Berkeley and a graduate of the international journalism program at Hong Kong Baptist University with minors in French and English literature. Email Katherine at katherineli@insider.com and follow her on Bluesky @ katherineli.bsky.social . Unemployment Jobs Employment More Labor Market
Source: Business Insider
