Bridging Skill Gaps for the Future: New Jobs Creation in the AI Age
Staff Discussion Notes, January 14, 2026
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Bibliographic details
- Authors: Florence Jaumotte, Jaden Kim, David Koll, Elmer Li, Longji Li, Giovanni Melina, Alina Song, Marina Mendes Tavares
- Published: January 14, 2026
- Series: Staff Discussion Notes
- DOI: https://doi.org/10.5089/9798229028196.006
Summary of core dynamics
- The demand and supply of new skills—especially in IT and AI—are reshaping labor markets, impacting wages and hiring.
- About one in ten job vacancies in advanced economies demands at least one new skill, often appearing first in the United States.
- The incidence is about half in emerging economies.
- These skills boost average wages and employment but deepen polarization, mostly benefitting high- and—through higher consumption of services—low-skilled workers, and potentially contributing to the shrinking of the middle class.
- Vacancies demanding AI skills post higher wages, but the diffusion of such skills is linked to lower employment in occupations with high exposure and low complementarity with AI, posing challenges for the youth.
- A Skill Imbalance Index reveals wide cross-country differences.
Key findings and labor-market implications
- Prevalence and geography:
- About one in ten job vacancies in advanced economies demands at least one new skill.
- The incidence of vacancies demanding new skills is about half in emerging economies.
- New skills often appear first in the United States.
- Wage and employment effects:
- Vacancies demanding AI skills post higher wages.
- New skills raise average wages and employment overall.
- Distributional effects:
- Skill diffusion deepens polarization, mostly benefitting high-skilled workers.
- Through higher consumption of services, lower-skilled workers also benefit.
- These dynamics potentially contribute to the shrinking of the middle class.
- Youth and occupational risk:
- Diffusion of AI-linked skills is associated with lower employment in occupations with high exposure and low complementarity with AI, posing challenges for the youth.
Analytical tools and cross-country variation
- Skill Imbalance Index:
- A Skill Imbalance Index reveals wide cross-country differences in the balance between skill demand and supply.
Policy recommendations and strategic priorities
- For economies facing strong demand for new skills:
- Prioritize education and reskilling.
- For economies facing strong supply of new skills:
- Foster firms’ absorption through innovation and access to credit.
Source: "Bridging Skill Gaps for the Future: New Jobs Creation in the AI Age", Staff Discussion Note, January 14, 2026.
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- Staff Discussion Note