Labor markets around the world are being reshaped by powerful trends, including rapid advances in artificial intelligence (AI), and population aging in some regions and youth bulges in others. AI’s impact on labor markets is multifaceted and complex: It has the potential to create new job opportunities and make many jobs more productive, but it will also automate some tasks leading to the destruction of some of today’s jobs. AI can also affect labor markets by changing international patterns of specialization. At the same time, demographic trends pose additional challenges. In all developed and many developing countries, aging populations will affect the availability of skills, the pace of structural change, and patterns of labor allocation. Meanwhile, in many developing countries, the youth population has yet to peak and will continue expanding in the coming decades. Hence, how AI shapes labor markets will also be impacted by demographic changes. For example, population aging, by reducing labor supply and raising labor costs, is expected to shape firms’ incentives to adopt labor-saving technologies. On the other hand, population growth will be fastest where digital connectivity—and the potential to leverage AI—is lowest. Heightened labor market uncertainty could contribute to social discontent, political polarization, and macroeconomic instability, raising the premium on policies that can foster labor market resilience.
Against this background, the conference will explore: (i) the expected impacts of AI on labor markets and structural transformation, and how these impacts are shaped by demographic trends and patterns of international specialization; (ii) how policies, especially structural ones, can smooth labor market transitions by supporting the creation of good jobs; (iii) how governments can prepare workers for a changing labor market; and (iv) what policy lessons can be drawn from specific country experiences.
Aim of the conference and topics covered
The aim of the conference is to bring together leading academics, international institutions, policymakers, and practitioners to shed light on these issues and draw robust and novel policy implications. Some of the key questions the conference will cover include:
- What are the expected impacts of AI on structural transformation and labor markets, and how do these vary across worker groups and countries? How is technological change interacting with demographic factors? How is AI influencing patterns of international specialization (e.g., through the tradability of services), and how is this shaping the future of work? How can policies help labor markets adapt to rapid technological and demographic change? What lessons can be drawn from specific country experiences tackling periods of rapid technological and demographic change? How should the education system respond to help create the skills of the future? How can social security and social protection policies best protect workers and support their transitions?
- What role can the private sector play in creating more and better jobs in a context of rapid technological and labor market changes? Given the context of change, what regulatory reforms can create an enabling environment for the private sector and foster business dynamism that generates high growth and employment opportunities?
The conference will feature a keynote speech by Gordon Hanson (Harvard University) and a high-level policy panel.
Organizing Committee
Peter Gal (OECD)
Frederico Gil Sander (World Bank)
Elena Ianchovichina (World Bank)
Florence Jaumotte (IMF)
Jacob Funk Kirkegaard (PIIE)
Jed Kolko (PIIE)
Samuel Pienknagura (IMF)
Raian Divanbeigi (World Bank)
