## New Skills and AI Are Reshaping the Future of Work

_IMF Blog, January 14, 2026_

## Source details

**Canonical URL:** [New Skills and AI Are Reshaping the Future of Work](https://www.imf.org/en/blogs/articles/2026/01/14/new-skills-and-ai-are-reshaping-the-future-of-work)

## Other formats

- [Markdown version](/en/blogs/articles/2026/01/14/new-skills-and-ai-are-reshaping-the-future-of-work/index.md)
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## Bibliographic details
- Authors: Kristalina Georgieva
- Published: January 14, 2026

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### Overview
- Author: Kristalina Georgieva
- Date: January 14, 2026
- Central thesis: Policy choices will determine whether workers and firms are adequately prepared for the AI revolution. Technological change creates both disruption and new opportunities; proactive policy can shift outcomes toward broader shared gains.

### Demand for New Skills
- Scale of demand:
  - "one in 10 job postings in advanced economies" require at least one new skill.
  - "one in 20 in emerging market economies" require at least one new skill.
- Occupational and sector patterns:
  - Professional, technical, and managerial roles show the most demand for new skills.
  - IT accounts for "more than half of this demand."
  - Sector-specific trends: healthcare—surge in telecare and digital health skills; marketing—increasing demand for social media expertise.

### Wage and Employment Effects
- Wage premiums:
  - In the United Kingdom and the United States, job postings that include a new skill tend to pay about "3 percent" more.
  - Openings with "four or more new skills" can pay "up to15 percent" more in the United Kingdom and "8.5 percent" more in the United States.
- Local economic effect:
  - In the US, regions with higher adoption of new skills saw employment rise by "1.3 percent for each 1 percentage point increase in the share of job postings that require new skills over the past decade."
- Distributional effects:
  - High-skill and low-skill workers tend to gain the most; middle-skill roles (e.g., routine office jobs) are being squeezed.
- AI-specific effects:
  - "Nearly 40 percent of global jobs" are exposed to AI-driven change.
  - Employment levels in AI-vulnerable occupations are "3.6 percent lower after five years" in regions with high demand for AI skills compared with regions with less demand.
  - Emerging evidence from the US indicates generative AI adoption reduces entry-level hiring—especially for tasks that can be automated.

### Global Readiness (Indexes and Country Groupings)
- Analytical tools:
  - Skill Imbalance Index: reflects relative weight of potential future new skill demand versus supply, using the US as a benchmark.
  - IMF AI Preparedness Index: focuses on preparedness across four areas relevant to smooth AI adoption.
- Country groupings by Skill Imbalance Index:
  - High demand, low supply (need investment in training and STEM): Brazil, Mexico, and Sweden.
  - High supply, more modest demand (need to stimulate innovation and firm creation): Australia, Ireland and Poland.
  - Emerging and low-income countries with limited demand and supply: need both sets of policies.
- Skill Readiness Index leaders: Finland, Ireland, and Denmark.
  - Common features: robust investment in tertiary education and lifelong learning programs.

### Policy Recommendations and Actions
- Skills and education:
  - Invest in training and ensure better education in science, technology, engineering, and mathematics.
  - Redesign education systems for an AI-driven economy to emphasize cognitive, creative, and technical skills that complement AI.
  - Provide retraining access for workers at risk of displacement.
- Labor market and mobility:
  - Deploy policies to help workers adapt and acquire new skills and remain engaged in the workforce.
  - Enhance worker mobility through affordable housing and flexible work arrangements.
- Competition and firm dynamics:
  - Strengthen competition policy and facilitate entry of new firms to prevent concentration of market power from acquisitions aimed at capturing scarce talent.
  - Stimulate innovation and improve business access to finance to help firms absorb available talent.
- Social protection:
  - Improve social protection to support those facing difficult job transitions and facilitate reintegration into the workforce.
- Cross-cutting emphasis:
  - Policy choices can turn disruption into opportunity; success requires bold steps now to invest in skills, support transitions, and keep markets competitive so innovation benefits everyone.

*Source: New Skills and AI Are Reshaping the Future of Work (IMF blog, January 14, 2026) by Kristalina Georgieva*

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## References

- [Our latest analysis](https://www.imf.org/en/publications/staff-discussion-notes/issues/2026/01/09/bridging-skill-gaps-for-the-future-new-jobs-creation-in-the-ai-age-572136?cid=bl-com-SDNEA2026001)

_Source: https://www.imf.org/en/blogs/articles/2026/01/14/new-skills-and-ai-are-reshaping-the-future-of-work_