# IMF, World Bank Officials Warn AI Could Deepen Global Jobs Gap

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/30123
Published: 2026-10-12T08:22:20.000Z
Updated: 2026-10-12T08:22:20.000Z
Section: Business

> Officials urged longer-term employment support and private-sector hiring as 1.2 billion young people in developing economies approach working age from 2025 to 2035.

Artificial intelligence could intensify a global employment challenge as about 1.2 billion young people in emerging-market and developing economies approach working age over the next decade, officials said at the IMF–World Bank annual meetings in Bangkok.

The meetings run from Oct. 12–18, 2026. Discussions have focused on longer-term support for young workers, incentives for companies to hire recent graduates and policies designed to mobilize private investment.

The International Monetary Fund estimates AI could eventually augment, downgrade or eliminate about 40% of jobs worldwide. Exposure could reach about 60% in advanced economies, compared with 23% in low-income countries.

IMF Managing Director Kristalina Georgieva said young people entering the labor market are particularly exposed as AI reshapes employment. She also described AI as a factor supporting global growth, with AI-related investment and trade helping keep 2026 growth near 3% despite an energy supply shock.

Georgieva estimated that AI adoption could add between 0.5 percentage point and 1 percentage point to growth in advanced Asia and between 0.2 percentage point and 0.8 percentage point in emerging Asia.

Singapore President Tharman Shanmugaratnam urged governments to make some employment-support measures introduced during past crises permanent. He also encouraged companies to hire recent graduates.

The demographic challenge extends beyond AI. World Bank President Ajay Banga has said developing countries may create about 400 million jobs for the 1.2 billion young people expected to enter working age, leaving an estimated gap of about 800 million positions.

Banga has urged governments to build infrastructure, improve policy and regulatory conditions, and reduce risks for private investors. He has also emphasized the role of private capital in job creation.

The World Bank has promoted practical, affordable AI applications that can operate in local languages and under limited infrastructure conditions. The approach, known as “small AI,” is intended to support job creation in places where advanced computing resources may be limited.

The officials’ remarks placed AI at the intersection of labor-market risk and potential economic growth. The annual meetings continue through Oct. 18 in Bangkok.