IMF Chief Warns AI Could Shrink Entry-Level Job Opportunities, Disrupt Career Paths for Young Workers: ‘Slow-Moving Tsunami’

The International Monetary Fund‘s (IMF) Managing Director Kristalina Georgieva warned that artificial intelligence (AI) could disrupt traditional career paths for young workers by reducing routine entry-level jobs that help them gain experience and advance professionally.

Georgieva made the remarks during a panel discussion in Bangkok, Thailand, on Monday, as part of the IMF–World Bank Annual Meetings, Reuters reported.

AI Is Shifting Demand For Workers

Georgieva described AI as a "slow-moving tsunami" for the labor market, estimating that the technology could affect around 40% of jobs worldwide, including roles that are enhanced, downgraded or eliminated. The figure rises to 60% in advanced economies and stands at 23% in low-income countries, she said.

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 also said routine, repetitive jobs were shrinking, while lower-paying positions were growing in data centers and services.

Although the study found a positive net employment impact in the area examined, Georgieva said the gains were concentrated in lower-paying jobs.

"Normally, they would get into these routine repetitive jobs and then grow up the ranks," Georgieva said of young workers entering the labor market. "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," she added.

IMF Chief Calls For Education And Tax Reforms

Georgieva urged policymakers to study labor-market changes, rethink education and prepare for a future in which workers must continually update their skills.

"We can acquire a skill and hold on to it for our life" is no longer a sustainable approach, she said, describing lifelong learning as a necessity.

She also raised concerns about government revenue if AI shifts economic activity away from labor toward capital.

"If AI changes the structure of the labor market and then there is less labor, more capital, what do we tax?" Georgieva said.

In August, a Goldman Sachs research study found that AI-related labor-market pressures are particularly pronounced among entry-level workers, with more AI-exposed industries experiencing weaker job-opening growth since 2022.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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