AI’s impact on global labour market- GLRI insight

Joy Agwunobi

As artificial intelligence (AI) continues to redefine industries and reshape economies, the recently unveiled 9th edition of the Global Labour Resilience Index (GLRI) has brought to light the opportunities and challenges at the intersection of AI and labour markets.

The report published by Whiteshield, a global public policy and AI economics firm, in collaboration with Google Cloud at the World Economic Forum in Davos, provides a comprehensive analysis of how nations are adapting to the transformative wave of AI.

The GLRI, developed in partnership with the Community of European Management Schools (CEMS), is a comprehensive analysis drawing from a decade of data and over 70 indicators to evaluate the adaptability and resilience of labour markets across 118 countries.

The report highlights the rapidly evolving nature of work, with new roles like data architects and ethics officers emerging as technology continues to reshape industries. However, it warns against complacency, urging policymakers, businesses, and individuals to take decisive actions to create resilient labour markets that fairly distribute the benefits of technological advancements.

As countries navigate the complexities of technological integration, the GLRI serves as both a guide and a cautionary signal, emphasising that current decisions will determine whether these advancements promote shared prosperity or deepen inequality.

The GLRI underscores a growing divide in the global workforce’s preparedness for AI disruption, while the United States and Singapore lead the rankings, demonstrating robust AI ecosystems and agile labour markets, many nations, particularly in Sub-Saharan Africa, are at risk of being left behind. The report’s findings highlight the dual nature of AI: it offers unprecedented opportunities for economic growth but also raises concerns about job displacement and widening inequality.

According to the report, the U.S. emerged as a global frontrunner, capturing 60 per cent of global AI investments over the past decade and hosting a quarter of the world’s AI startups. Its dynamic labour market—fueled by innovation hubs in states like California, Massachusetts, and Washington—exemplifies how integrating technological advancements with economic flexibility fosters job creation. Singapore ranked second globally, combines strong governance with strategic investments in AI and digital infrastructure, serving as a model for balancing innovation and inclusivity.

The report also provides a detailed regional analysis of labour market resilience, showing significant variations in performance across different parts of the world. It noted that Europe maintains strong overall labour market resilience, with six of its nations occupying top global positions. Countries like Sweden, Germany, and the Netherlands have successfully integrated traditional strengths, such as robust education systems and social safety nets, with cutting-edge AI strategies. However, disparities remain. Northern and Western Europe outperform their Eastern and Southern counterparts, revealing uneven progress. For instance, while Germany ranks 5th globally for AI integration, Moldova lags at 113th.

According to the findings, Sub-Saharan Africa remains the lowest-ranked region globally, facing numerous challenges in labour market resilience. The region accounts for 12 of the 20 lowest-ranked countries worldwide, with weak performances in both traditional and AI-related metrics.

However, the report noted that the region’s young and rapidly growing population presents immense potential for an AI-driven leap in labour resilience. According to the GLRI, structural and policy gaps hinder progress with issues such as inadequate labour protection, limited inclusiveness, and deficiencies in education and training continuing to obstruct the region’s ability to unlock its potential.

The Middle East and North Africa (MENA) region, ranked fourth globally, showcases a diverse and uneven landscape. While some progress has been made, significant differences exist between GCC and non-GCC countries. The region performs well in AI-related metrics, with substantial investments in AI, but struggles with adaptive resilience in areas like AI penetration and entrepreneurship. Despite these challenges, the report noted that over half of the region’s countries are ranked in the top 50 for transformative capacity, offering a strong platform to capitalise on the opportunities presented by AI.

In the Asia-Pacific (APAC) region, which ranks third globally, a balanced performance is observed, with approximately two-thirds of its countries placed in the top 50. Leading economies like Singapore, China, and South Korea dominate the region in AI and technology adoption. Singapore ranked first regionally and second globally, excels in governance, business environment, and digital skills, as well as AI entrepreneurship and investment. China is a frontrunner in firm-level AI adoption and ranks among the global leaders in AI equipment capacity and research, though governance and institutional capacity remain areas of concern. Japan, ranked 17th globally, demonstrates robust AI capabilities, while New Zealand and Australia benefit from their strong traditional economic foundations, securing high rankings overall.

The GLRI further  outlines three distinct pathways for countries to build labour market resilience:

• Traditional Pathway: Exemplified by Sweden, Netherlands and Norway, this approach emphasises education, robust social safety nets, and stable economic policies.
• AI and Innovation-Driven Pathway: Led by the U.S., this model, according to the report prioritises dynamic entrepreneurship and significant investments in AI research and development.
• Blended Pathway: Countries like Singapore demonstrate a hybrid model, combining traditional strengths with strategic AI investments.

The GLRI underscores the need for a transition from uniform, one-size-fits-all approaches to tailored, citizen-focused policies powered by AI, big data, and advanced analytics. It highlights the transformative potential of technologies such as AI, blockchain, and IoT across various stages of the labour lifecycle, including education, job searching, workforce productivity, and lifelong learning.

The report concludes with a call for policymakers to take proactive steps in shaping the future of labour markets. This involves adopting AI-driven, personalised strategies while prioritising investments in digital infrastructure and literacy.

Additionally, it stresses the urgency of addressing the challenges posed by AI to prevent deepening existing inequalities, displacing vulnerable groups, and missing opportunities for sustainable development.

Christopher Pissarides, Nobel Laureate and director at Whiteshield, highlighted the stakes, stating, “The GLRI 2025 highlights the urgency for governments, businesses, and individuals to build resilient labour markets. This year’s report provides actionable insights to address the challenges of technological disruption, economic inequalities, and global crises, ensuring inclusive and sustainable economic growth. By understanding how labour markets adapt and evolve, we can drive innovation and create opportunities that benefit everyone.”

Karan Bhatia, Google’s Global Head of Government Affairs & Public Policy, stated “As AI reshapes the global workforce, the GLRI offers a roadmap for countries to navigate this new era. It highlights pathways for inclusive, forward-looking policies that will not only address the challenges of automation but also harness the potential of AI to create opportunities for all.”