IMF chief warns AI surge could erase entry-level jobs for youth
IMF Managing Director Kristalina Georgieva said AI is a "tsunami" for employment, threatening the first rung of the career ladder for young workers.
At a discussion in Bangkok, where Thailand hosts the IMF-World Bank Annual Meetings, IMF Managing Director Kristalina Georgieva described artificial intelligence as a "tsunami" that could wipe out entry-level positions for young workers. She explained that AI investment helps keep the global economy growing at roughly 3%, but this growth does not guarantee better job prospects for newcomers. IMF estimates suggest AI will impact around 40% of jobs globally and up to 60% in advanced economies, with some roles enhanced, others downgraded, and many eliminated.
Georgieva emphasized that the loss of routine, repetitive jobs removes the traditional pathway for youth to climb the career ladder. She urged governments to overhaul taxation and education policies, stressing the need for lifelong learning and soft-skill development. LinkedIn executive Aneesh Raman’s earlier comment that the career ladder now resembles a "climbing wall" was referenced to illustrate the shift toward lateral moves.
Why it matters
AI could remove the basic jobs that help young people start their careers, forcing societies to redesign education and tax systems.
How this story developed
- Sep 4 Rising French borrowing costs spark fears of wider Eurozone debt risk
- Sep 21 The 30-year Treasury rate climbed past 5.61% on Tuesday, marking its highest point since 2002, while the broader debt market continues to weaken. Inflation worries and a surge in corporate bond issuance are pressuring yields, and comments from New York Fed President John Williams hinted at a possible rate hike later in 2026. Analysts note a lack of large-scale buyers for long-dated Treasuries despite historically low valuations. Meanwhile, major issuances such as Paramount Skydance’s $52 billion syndicated bond package are adding supply to the market.
- Sep 30 Japanese equities rose alongside broader Asian stocks while markets awaited key US inflation figures that could steer interest-rate policy.
- Oct 7 Nasdaq closed at a record high and Japan lifted its 10‑year bond coupon to 3.1%.
- Oct 7 IMF Managing Director Kristalina Georgieva urged governments to adopt tough fiscal measures as global debt ratios hit World War II highs and bond yields rise sharply.
- Oct 7 The Treasury announced plans to sell a $39 billion block of 10‑year notes.
- Oct 8 The 10‑year yield climbed to just under 5% and the spread to German bonds topped 150 basis points.
- Oct 9 Bond market sell‑off intensifies as yields spike.
- Oct 12 The Bangkok meetings now emphasize debt sustainability as the war‑driven energy shock continues.
- Oct 12 Rising borrowing costs hit France as a global debt storm intensifies.
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