AI Could Widen Inequality, Disrupt Youth Employment, IMF Warns

Young workers could face increasing difficulties securing their first jobs as artificial intelligence (AI) reshapes recruitment, automates routine tasks and changes the skills employers demand, the International Monetary Fund (IMF) has warned.

The warning comes as the growing adoption of AI raises concerns about employment opportunities for young people, particularly those who depend on entry-level positions to gain experience and build careers.

Speaking at a panel discussion during the 2026 IMF-World Bank annual meetings in Bangkok, Thailand, IMF Managing Director Kristalina Georgieva said AI could augment, downgrade or eliminate about 40 per cent of jobs globally.

Georgieva described the technology’s effect on the labour market as a “slow-moving tsunami”, warning that its consequences were already becoming visible in advanced economies.

She said young people were particularly vulnerable because routine and repetitive jobs often provide the first rung on the career ladder, allowing inexperienced workers to acquire skills before moving into more specialised and better-paying positions.

“Normally, they would get into these routine, repetitive jobs and then grow up the ranks. But if they’re gone, young workers could find it harder to establish themselves in the labour market,” she said.

The concern is not limited to outright job losses. AI could also change the nature of existing jobs, reduce demand for some skills and increase the premium employers place on workers who can use the technology effectively.

Georgieva cited IMF research in the United States indicating that about 10 per cent of jobs already require AI skills, which tend to attract higher pay. She added that although employment gains had emerged in some areas, much of the growth identified in the research was concentrated in lower-paying jobs.

For Nigeria, the warning raises questions about how prepared young jobseekers are for a labour market in which digital competence, analytical thinking and the ability to work alongside automated systems are becoming increasingly important.

The challenge is particularly relevant to sectors that employ large numbers of young people in administrative, customer service, data processing and other routine roles. However, the scale of potential disruption in Nigeria would depend on the pace of AI adoption, the types of jobs exposed and whether businesses use the technology to replace workers or improve their productivity.

In a July 2026 study, *Unlocking the Potential: AI in Sub-Saharan Africa*, the IMF identified unreliable electricity, inadequate digital infrastructure, shortages of technical skills and weaknesses in regulatory and institutional capacity as major constraints to AI adoption across the region. The report said countries would need to address these obstacles to benefit from the technology rather than fall further behind.

These constraints present a dual challenge for Nigeria: preparing workers for jobs that AI may transform while building the infrastructure and skills needed to attract investment in new technology-driven industries.

Georgieva urged governments to monitor changes in employment patterns, reform education systems and promote lifelong learning to help workers adapt to shifting labour market requirements.

“We cannot today imagine what exactly the world of work will be five years from now, but we can be disciplined and carefully assess what is happening, and then draw lessons. But most importantly, act on them,” she said.

The warning comes as policymakers and employers grapple with how to balance AI-driven productivity gains against the risks of job displacement and widening income inequality.

For young Nigerians, the implications extend beyond acquiring basic digital skills to developing capabilities that complement AI, including problem-solving, communication, critical thinking and specialised technical knowledge.

The IMF’s warning does not mean that 40 per cent of global jobs will necessarily disappear. Rather, it reflects the proportion of jobs estimated to be affected through a combination of productivity enhancement, changes in job quality and possible elimination of roles.

The policy challenge, therefore, is to ensure that AI adoption creates pathways into employment for younger workers instead of weakening the traditional routes through which they acquire experience and progress in their careers.