World Bank Jobs Council Calls for ‘Crisis-Era’ Employment Support as IMF Warns of AI ‘Tsunami’
Global financial institutions are raising concerns about the growing impact of artificial intelligence (AI) on employment, with the World Bank’s Jobs Council urging governments to strengthen support for workers while the International Monetary Fund (IMF) warns of a major transformation in labour markets. The warnings emerged during the IMF and World Bank annual meetings in Bangkok in October 2026, where policymakers discussed the risks AI poses to young workers, employment opportunities and economic stability.
IMF Managing Director Kristalina Georgieva described AI as a “slow-moving tsunami” affecting the global workforce. She warned that young people entering the job market could face particular difficulties as companies increasingly automate routine tasks that have traditionally provided entry-level employment and opportunities to gain professional experience.
Georgieva highlighted the importance of these early-career roles in helping young workers develop skills and progress into more specialised positions. If AI systems replace a significant share of these jobs, graduates could find it harder to secure their first positions and build long-term careers, potentially widening inequalities between workers with different levels of education and experience.
According to the IMF’s estimates, AI could affect approximately 40% of jobs worldwide, with the proportion rising to around 60% in advanced economies. The impact will vary considerably across occupations and countries. Some jobs may disappear, while others could be transformed through automation, leaving workers with new responsibilities or requiring them to acquire additional skills.
The World Bank’s Jobs Council has called for governments to make employment support measures of the kind introduced during major economic crises a more permanent part of their policy toolkit. Singapore President Tharman Shanmugaratnam, who co-chairs the council, has emphasised the need for stronger measures to help young people enter the workforce and connect them with employers.
Such measures could include wage subsidies, apprenticeships, targeted hiring incentives, vocational training and programmes that help businesses recruit inexperienced workers. Support of this kind could reduce the cost and risk of hiring young employees while giving them opportunities to develop practical skills in workplaces increasingly influenced by AI.
The debate also highlights the importance of reforming education and training systems. Governments and employers may need to place greater emphasis on adaptability, critical thinking, communication and digital skills, alongside technical qualifications. Continuous learning could become essential as workers move between occupations and adjust to changing demands.
AI is not exclusively a threat to employment. Investment in AI infrastructure, computing equipment, data centres and related technologies is contributing to economic activity and creating opportunities in several industries. The IMF has noted that the AI boom is supporting global growth, particularly in economies that supply semiconductors, advanced technology products and related services.
However, the benefits may not be distributed evenly. Countries with strong digital infrastructure, reliable electricity supplies, skilled workers and access to investment may be better positioned to benefit. Developing economies with weaker infrastructure could struggle to capture these gains unless they improve connectivity, education and access to technology.
For governments, the challenge extends beyond unemployment. If AI shifts economic activity away from labour and towards capital-intensive production, public finances could also come under pressure because many countries rely heavily on income and payroll taxes. At the same time, governments may face greater demands for retraining, income assistance and employment programmes.
The latest warnings do not mean that a global employment crisis is inevitable or that every job exposed to AI will disappear. The eventual outcome will depend on how quickly businesses adopt the technology, whether new occupations emerge, how productivity gains are distributed and how effectively governments prepare workers for change.
The message from the IMF and the World Bank’s Jobs Council is that policymakers should act before labour-market disruption becomes more difficult to manage. Strengthening early-career employment, expanding retraining opportunities and helping businesses adapt could determine whether AI becomes a source of broader economic prosperity or deepens existing inequalities in the global workforce.
