AI is reshaping labour markets globally

Source: Whiteshield. Report cover for the GLRI 2025.

The most resilient labour markets combine traditional labour policies with strategic investments in AI and personalised, data-driven strategies, according to the 9th Global Labour Resilience Index (GLRI)* by Whiteshield. 

Released in collaboration with Google Cloud on the sidelines of the World Economic Forum (WEF) Annual Meeting in Davos, the report found that while some countries are well positioned to capitalise on AI, a majority risk falling behind.

Leading the 2025 GLRI rankings in the APME region is Singapore, recognised for its strong entrepreneurial ecosystems, flexible labour markets, and leadership in AI adoption and innovation. Some countries in South Asia and the Middle East and North Africa (MENA) region have shown significant advancements, with India, KSA and the UAE benefiting the most from AI investments, Whiteshield said.

The rapid evolution of AI presents both significant opportunities and challenges for the global workforce. AI has the potential to boost workforce availability, quality, and efficiency, leading to the emergence of new skilled occupations such as AI data architects, human-AI interaction designers, and AI ethics officers. However, the impact of AI on labour markets also raises concerns about job insecurity, displacement, and increased wage inequality. Proactive and forward-looking policies are crucial to ensure labour markets remain resilient, adaptable, and capable of distributing AI's benefits equitably across society.

Highlights include:

The GLRI emphasises a shift from "one-size-fits-all" to personalised, citizen-centric policies enabled by AI, big data, and advanced analytics. The report outlines three approaches to labour market resilience: the Traditional Pathway (e.g., Sweden, Norway, Netherlands) emphasising robust social safety nets, education, and stable economic policies; the AI and Innovation-Driven Pathway (e.g., the US) prioritising a dynamic, entrepreneurial environment with a strong focus on R&D, especially in AI; and the Blended Pathway (e.g., Singapore) combining traditional strengths like strong governance with strategic AI investments.

The Middle East and North Africa (MENA) region, ranking 4th globally among different regions, presented a complex and varied landscape. While showing progress overall, significant disparities persist between GCC and non-GCC countries in labour market resilience. The region demonstrates strength in AI-related metrics and strategic AI investments, but nearly half of its countries lag in AI cyclical adaptive resilience, reflecting challenges in AI penetration and entrepreneurship. Despite these weaknesses, over half of the region's countries rank in the top 50 for transformative capacity, providing a strong foundation for harnessing the potential for AI.

The Asia-Pacific (APAC) region maintained its 3rd-place ranking, with a balanced performance and approximately two-thirds of its countries in the top 50 globally. Leading economies like Singapore (1st regionally, 2nd globally), China (2nd regionally), and South Korea excel in AI and technology, the report said. 

Singapore is a global leader in governance, business environment, and digital skills, also ranking highly in AI entrepreneurship and investment. China leads in firm-level AI adoption and ranks among the top three in AI equipment capacity and research, though lower scores in governance and institutional capacity hinder its overall performance. Japan (17th globally) shows strong AI capabilities, while New Zealand and Australia's high rankings are primarily due to traditional economic strengths.  

Karan Bhatia, Google's Global Head of Government Affairs & Public Policy said, "As AI reshapes the global workforce, the GLRI offers a roadmap for countries to navigate this new era. It highlights pathways for inclusive, forward-looking policies that will not only address the challenges of automation but also harness the potential of AI to create opportunities for all."

"As AI continues to transform industries, the GLRI 2025 highlights the urgency for governments, businesses, and individuals to build resilient labour markets," stated Sir Christopher Pissarides, Nobel Laureate, Special Advisor and Director at Whiteshield. 

"This year's report provides actionable insights to address the challenges of technological disruption, economic inequalities, and global crises, ensuring inclusive and sustainable economic growth. By understanding how labour markets adapt and evolve, we can drive innovation and create opportunities that benefit everyone."

The GLRI concluded with a call to action for policymakers to proactively shape the future of labour markets by embracing AI-driven, personalised strategies and investing in digital infrastructure and literacy. The report also stressed the urgency of this shift, highlighting the substantial costs of inaction, including growing inequality, displacement of vulnerable populations, and missed opportunities for sustainable growth.

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Read the report at https://whiteshield.ai/insights/resilience-of-jobs/whiteshield-google-davos-2025/

*Published in partnership with the Community of European Management Schools (CEMS) and drawing on a decade of data covering over 70 indicators, the GLRI reveals important insights into how 118 nations respond and adapt their labour markets to different types of external shocks, including the rise of AI.