IMF's Georgieva Warns AI Threatens Entry-Level Jobs

The International Monetary Fund (IMF) has expressed concerns that artificial intelligence (AI) is diminishing entry-level job opportunities for young graduates, particularly in developing economies reliant on robust employment growth. IMF Managing Director Kristalina Georgieva stated that the warning arises as evidence suggests a decline in demand for first jobs in sectors vulnerable to automation and AI.

She noted that AI could potentially impact about 40% of global employment through job augmentation, downgrading, or elimination. Georgieva urged governments to closely monitor labor markets, reform systems, and promote lifelong learning to help workers continuously update their skills.

At a World Bank Group event titled "Small AI: More and Better Jobs," Singapore President Tharman Shanmugaratnam highlighted visible declines in entry-level positions and warned of a growing divide between economic output and job creation in developing countries. He called for stronger collaboration between governments and private businesses to ensure fresh graduates are recruited, emphasizing the importance of early work experience.