The International Monetary Fund (IMF) says artificial intelligence is already cutting the number of jobs open to young people starting their careers. The warning raises fresh doubts about whether developing economies can create enough work for their fast-growing workforces.
Georgieva: First Jobs Are Drying Up
IMF Managing Director Kristalina Georgieva spoke at a World Bank Group flagship event titled “Small AI: More and Better Jobs.” The event took place during the 2026 World Bank and IMF meetings.
She said demand for first jobs after graduation is already falling. The drop is sharpest in sectors that depend heavily on technology.
According to Georgieva, AI is reshaping how work is organised around the world. Routine and repetitive roles are losing demand, even as new openings appear elsewhere.
She added that AI could touch about 40 per cent of jobs globally. Some roles would be augmented, some downgraded and others eliminated.
A Call for New Skills and Policies
Georgieva urged governments to track labour market changes closely. She also asked them to update their education systems and encourage lifelong learning.
Workers, she said, can no longer rely on one skill for an entire career.
Tharman: The Evidence Is Clear
Singapore’s President, Tharman Shanmugaratnam, also spoke at the event. He said the fall in demand for entry-level roles is already visible, especially in sectors most exposed to AI.
“The first job upon graduation is now seeing less demand. The evidence is already very clear,” he said.
He warned that developing countries could see a growing gap between economic growth and job creation. Some of them already record strong growth without matching gains in employment. In his view, AI could deepen that gap if governments stay passive.
Why the First Job Matters
Tharman said governments should work with private firms to open doors for fresh graduates. Missing the first rung of the career ladder, he argued, can cost a young person more than a year of work experience.
Long waits for a first job could also leave one graduate cohort after another competing for few openings. Their skills and confidence may suffer as well. “We can’t afford to lose that,” he said.
He urged policies that encourage employers to hire new graduates.
Rethinking Higher Education
Tharman also called for changes in universities and other tertiary institutions. They should give more weight to practical training, internships and workplace attachments, he said.
The link between academic qualifications and career prospects is weakening, he noted. Schools must therefore prepare students for shifting workplace demands instead of leaning mainly on certificates.
Finally, he said workers will need to keep updating their skills as AI spreads further into the economy.
