AI, Inequality, and Labour Resilience
Whiteshield, in partnership with Google Cloud, has released the 9th edition of the Global Labour Resilience Index (GLRI) during the World Economic Forum (WEF) Annual Meeting in Davos. Drawing on over a decade of data and more than 70 indicators, the report offers deep insights into how 118 nations adapt their labour markets to external shocks, including the rapid rise of AI. The event, titled 'The Transformative Impact of AI on Global Economies & Labour Markets,' brought together over 50 senior policymakers, CEOs, academics, and international organizations. Nobel Laureate Sir Christopher Pissarides, Special Advisor at Whiteshield, and Anna Koivuniemi, Head of Google DeepMind Impact Accelerator, chaired the discussion.
The report identifies the United States and Singapore as the top performers in labour market resilience for 2025, owing to their entrepreneurial ecosystems, flexible labour policies, and AI leadership. Sweden ranks third, driven by investments in education and R&D. Countries such as India, the UAE, and Saudi Arabia are emerging as key beneficiaries of AI investments, showcasing substantial progress in labour market adaptation.
While AI offers transformative opportunities, including improved workforce efficiency and new skilled roles like AI ethics officers, the report highlights challenges such as job displacement, wage inequality, and the widening gap between nations. It emphasizes the need for proactive policies to ensure equitable benefits from AI's rapid integration into global labour markets.
The GLRI outlines three resilience pathways: traditional models seen in Sweden and Norway, innovation-driven strategies led by the US, and blended approaches like Singapore's focus on governance and AI investments. It calls for governments to shift toward personalized, AI-driven policies and invest in digital infrastructure to navigate these transformations.
Europe dominates the rankings with six of the top ten resilient economies, but disparities persist, particularly in Eastern and Southern Europe. Sub-Saharan Africa remains the least resilient region, hindered by structural and policy gaps, despite its demographic potential. The Middle East and North Africa (MENA) region showcases a mixed performance, with GCC countries like the UAE and Saudi Arabia excelling, while non-GCC nations lag in AI adaptability. The Asia-Pacific region, led by Singapore, China, and South Korea, demonstrates strength in governance, digital skills, and AI innovation.
Karan Bhatia, Google's Global Head of Government Affairs, stated, 'The GLRI offers a roadmap for inclusive, forward-looking policies to address the challenges of automation while unlocking AI's potential.' Sir Christopher Pissarides added, 'This year's report provides actionable insights to tackle inequality and foster innovation for sustainable growth.'
The GLRI concludes with a call to action for policymakers to embrace AI-driven strategies and prioritize investments in education, digital literacy, and workforce transformation. The report stresses that inaction risks deepening inequality and missing opportunities for sustainable economic growth, urging governments to act now to ensure labour market resilience in the age of AI.
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