ILO: AI Might Lower Wages with Possibility of Creating New Jobs

Director-General of the International Labor Organization (ILO) Gilbert F. Houngbo stressed the importance of doubling efforts to overcome complex challenges and transformations that face the labour market to ensure prosperity for coming generations.

Houngbo made his remarks during a discussion panel on the promising future of the labor market as part of the Global Labor Market Conference in Riyadh, saying: “Young people of both sexes are not only beneficiaries in the labor market, but also active partners and their presence is a powerful driver of change and innovation.”

He added that the employment rates for young men and women in the Arab region stand at about 26%, and we have a responsibility to empower them with the tools that will help them in the future and with social justice. “ًWe must provide employment opportunities for young men and women, invest in them, and consider policies and programs to reach the appropriate goals,” he added.

The ILO Director-General noted the current significant challenges exacerbated by climate change, rapid technological development, population transformation and geopolitical tensions.

He pointed out that artificial intelligence (AI) is a transformative power that can form the core fabric of the workforce, and young people should be enabled to adapt and innovate, noting that AI might lower wages with the possibility of creating new jobs.

Houngbo reviewed statistics published in the organization on achieving global coverage of the world’s labour markets by 2030, in which the world would need to create 24 million jobs, which requires investment in global infrastructure through the expansion of internet networks, where the lifelong learning culture would be the central focus.

He added that the digital economy represents a clear path to employment opportunities, where other opportunities should also be explored, including the green economy, which would provide over 8 million jobs according to the organization’s reports by 2030, all of which need a clear political will and coordination among stakeholders.