Young Workers Face Job Threats from AI, Warns IMF Head

As global leaders convene in Davos for the 2026 World Economic Forum, discussions have turned to the profound impact of artificial intelligence (AI) on the labor market. Christy Hoffman, general secretary of the UNI global union, cautioned that young workers are likely to experience the most significant disruptions as AI technologies become more prevalent. The urgent need to manage the effects of AI on employment was a recurring theme during the sessions, with calls for equitable distribution of AI's benefits echoing throughout the conference.

The Call for Fair Management of AI Disruption

During a panel discussion at Davos, Christy Hoffman emphasized that the primary goal of AI in business is to enhance productivity and reduce costs, which inevitably leads to job losses. "It’s just a basic premise that the point of AI, on the business side, is to increase productivity, therefore lower costs – which will be cutting jobs," she stated. Hoffman called for a proactive approach to manage the disruption caused by AI, insisting that the productivity gains should be shared equitably across the economy. "We want to share in the gains. We’re not going to stop AI, nor do we want to even try – but we don’t want it to just roll over us," she said. This sentiment reflects a growing concern among labor representatives regarding the future of work in an increasingly automated landscape.

Warnings from Tech Leaders on AI's Social License

Satya Nadella, CEO of Microsoft, added another layer to the conversation by warning that AI risks losing its 'social permission' to operate if it fails to deliver benefits to a broader demographic. He stressed that AI advancements should not only cater to a select few powerful tech firms but should also foster improvements in areas such as healthcare and public welfare. This perspective highlights the ethical considerations surrounding AI development and deployment, emphasizing that without inclusive benefits, public trust and acceptance could diminish.

Global Inequality and Economic Cooperation

Christine Lagarde, President of the European Central Bank, raised alarms about the potential for AI to exacerbate global inequality. She pointed out that growing mistrust among nations, particularly as trade barriers rise, could hinder the progress of AI technologies. "We are dependent on each other," Lagarde remarked, pointing out the capital-intensive nature of AI. She emphasized the need for countries to collaborate and define new rules to ensure the equitable distribution of AI's advantages. Meanwhile, Mark Carney, the Canadian Prime Minister, underscored the necessity for unity in addressing the potential for a permanent shift in the global economic order due to erratic U.S. trade policies.

Looking Ahead

As discussions at Davos 2026 continue, the consensus among leaders seems clear: the impact of AI on the labor market is a pressing issue that demands immediate attention. With young workers poised to face the brunt of job disruptions, it is crucial to establish frameworks that promote equitable growth and shared benefits. The calls for cooperative management of AI's implications suggest a path forward, but achieving this will require commitment from both the public and private sectors.