OECD: AI Revolution in Employment

MetaversePlanet July 13, 2023Last Updated: February 8, 2024

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The Organization for Economic Co-operation and Development (OECD) has reported that the impact of artificial intelligence on the job market has led to three out of every five workers fearing the loss of their jobs to AI within the next decade.

The OECD suggests that we may be on the brink of an AI revolution, with nearly 27 percent of jobs being highly susceptible to automation.

In its 2023 Employment Outlook report, titled “Artificial Intelligence and the Labor Market,” the OECD analyzes AI’s effect on the job market. The report notes that although the corporate adoption of AI is currently somewhat limited, the swift progress in technology, reduced costs, and the increase in AI-skilled workers signal that an “AI revolution” could soon unfold in OECD countries.

The report emphasizes that jobs most at risk of automation account for about 27 percent of employment. It identifies roles in sectors such as construction, farming, fishing, and forestry, which are largely filled by low- to medium-skilled workers, as being the most vulnerable to automation. Conversely, high-skilled jobs are deemed the least likely to be affected.

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EMPLOYEES HAVE CONCERNS ABOUT AI TAKING OVER THEIR JOBS

The report found little evidence of negative effects on employment among companies that use AI. In fact, both employers and employees have reported that AI has helped in reducing monotonous and hazardous tasks, which has led to improved engagement and safety for workers.

However, the report also highlighted that three out of every five workers are concerned about AI completely replacing their jobs within the next decade. Concerns were also raised about the potential for declining wages in their sectors due to the widespread adoption of AI.

The report emphasized the necessity for governments to encourage employers to provide more training, integrate AI skills into educational curriculums, and promote diversity within the AI workforce.

LABOR MARKETS CONTINUE TO BE RESILIENT

The report also noted that despite a significant slowdown in the global economy since 2021, the labor markets in OECD countries have remained robust.

It was observed that employment levels have fully recovered from the Covid-19 crisis, and unemployment has fallen to its lowest level since the early 1970s.

Although nominal hourly wages have risen, they have not kept pace with inflation, resulting in a decrease in real wages across nearly all OECD countries. However, the report forecasts a continued rise in employment across the OECD for 2023 and 2024.