March 2026
Credit: iStock/ismagilov
National success in the AI age isn’t just about technology, it’s about workforces ready to use it
This article draws on the IMF Staff Discussion Note Bridging Skill Gaps for the Future: New Jobs Creation in the AI Age (January 2026).
Opinions expressed in articles and other materials are those of the authors; they do not necessarily reflect IMF policy.
As AI transforms work, countries aren’t just rushing to build data centers and better algorithms, they’re racing to build smarter labor markets. Demand for new and digital skills is accelerating: One in ten job postings in advanced economies, and one in twenty in emerging markets, now requires at least one new skill. Employers are willing to pay for it: US and UK job postings seeking new skills tend to offer wage premiums of about 3 percent, and up to 15 percent for those listing multiple new capabilities. That payoff underscores the value of staying ahead of the skill curve.
But some countries are better prepared than others. The IMF’s Skill Readiness Index reveals which economies are best positioned for the future. Of the 23 countries with available data, Ireland, Finland, and Denmark lead the pack, combining high shares of tech graduates with strong adult literacy and retraining systems. Their challenge now is not just to produce talent, but to absorb it. These countries must foster innovation and expand high-skill job creation so that their investments in education translate into broad opportunity.
Others face the opposite obstacle. Countries like Sweden and The Netherlands show robust demand for new skills but lack trained workers to meet that demand. Policies must focus on boosting talent pipelines, through expanded education and reskilling.
Ultimately, the countries that both prepare workers and create the necessary conditions for business to absorb those skills will be best placed to thrive in the AI economy.
