IMF Warns AI To Impact 40% Of Global Jobs, Middle-Class Roles Face Biggest Squeeze

Business Today's Group Editor, Siddharth Zarabi in exclusive conversation with IMF Managing Director Kristalina Georgieva compared AI’s impact on employment to a “tsunami” hitting global labor markets. The IMF estimates 40% of jobs worldwide, and 60% in advanced economies, will be affected—either enhanced, replaced, or reshaped. While AI-skilled workers are earning more and driving demand in low-wage service sectors, the middle class faces the biggest squeeze as mid-level roles decline. Automation is also reducing entry-level opportunities, raising concerns for fresh graduates. Georgieva urged policymakers to reform education for adaptability, strengthen social safety nets, and adopt flexible labor models like Denmark’s to balance opportunity with protection in the AI era.