The OECD report, “Creating jobs and local economic development 2024,” highlights the growing influence of generative artificial intelligence (AI) in performing cognitive non-routine tasks that were traditionally reserved for highly skilled professionals. While AI was initially used for automating routine and low-skilled tasks like data processing, it now extends its reach into sectors such as education, finance, and IT, affecting approximately a quarter of all jobs.
Employment markets in OECD countries face challenges such as an aging population, sluggish growth, regional disparities, and a shortage of skilled workers. Despite reaching record employment levels in 2023, significant disparities persist between regions. The most prosperous regions have an average employment rate 10.5 percentage points higher than less developed areas. Moreover, there are age-related imbalances with young people, particularly in megacities, encountering difficulties in the job market. Disparities in labor productivity are also evident, with successful regions maintaining a 50% advantage over the rest.
The OECD does not view AI as a direct threat to employment. The report compares AI to automation, which despite displacing some jobs, has ultimately led to a net increase in job opportunities. AI can also help address skill shortages by providing new avenues for individuals to access previously unattainable positions.
The report emphasizes the importance of developing policies that harness AI’s potential for regional growth. Key priorities include raising awareness of technology’s benefits, supporting small businesses in integrating AI, managing risks, and providing targeted assistance to workers whose roles may be affected by new technologies. It underscores the need for collaboration between the public and private sectors to invest in retraining employees and safeguard their rights.
Furthermore, the report highlights that generative AI has the potential to widen regional disparities in OECD countries, with its impact being most pronounced in large cities and high-skilled industries.