Recent policy developments on AI in the labour market

This paper from the OECD examines the growing impact of AI on labour markets and considers how governments should respond to the changes it may bring. The OECD takes a balanced view: AI can improve productivity, change how existing jobs are performed and create new opportunities, but it may also disrupt some occupations and leave certain workers at greater risk of losing employment. The effects are therefore unlikely to be the same for everyone. Much will depend on how quickly workers, firms and governments can adapt to changes in the way work is organised. Rather than focusing only on preventing job losses, the paper emphasises preparing workers to take advantage of new opportunities created by technological change.

Skills are an important part of this adjustment, although the paper does not suggest that most workers need highly specialised technical knowledge. Instead, many workers will need basic AI and digital skills that allow them to understand and use AI effectively in their existing jobs. The OECD also points to the importance of providing training to workers before they are displaced, particularly those whose jobs are more exposed to automation and technological change. This includes both people who are already unemployed and employees who are still working but may face disruption in the future. In this sense, skills policy is presented as one tool for helping workers adapt, rather than as the only solution to the challenges created by AI.

Overall, the paper argues for a proactive approach in which governments, businesses and education providers work together to manage the transition brought about by AI. Different countries are already experimenting with financial support, reskilling programmes and partnerships between governments and technology companies. Some initiatives are designed specifically for workers whose jobs are at high risk of technological disruption, while others aim to help groups that are underrepresented in the digital economy. The broader message is that the consequences of AI are not predetermined: good policies can help workers adjust, reduce the risks of displacement and ensure that the productivity and economic benefits of AI are more widely shared.