EU Job Quality Improves, But AI Threatens Entry-Level Roles and Wages
European Commission warns AI poses risks to entry-level jobs and working conditions despite decade of gains in pay, security and working time.
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EU Employment Outlook: Progress Masks AI Risks
The European Commission published its 2026 European Employment and Social Outlook on 13 October 2026, revealing a mixed picture for Europe’s labour market. The report finds that job quality in the EU has generally improved over the past decade, particularly in pay, job security and working time.
However, the Commission’s 2026 Employment and Social Outlook highlights potential pressure on demand for workers in entry-level and routine occupations due to AI. More concerningly, the outlook warns of possible consequences for wages and working conditions from AI adoption.
Global AI Employment Impact: IMF Sounds Alarm
The scale of AI’s labour market disruption became clearer at the 2026 IMF/World Bank Annual Meetings in Bangkok, Thailand, where IMF Managing Director Kristalina Georgieva described AI’s impact on the global labour market as a “slow-moving tsunami.”
IMF estimates reveal stark disparities across economies:
- AI could affect about 60% of jobs in advanced economies
- AI can affect about 40% of jobs globally
- AI could affect about 23% of jobs in low-income countries
An IMF study in the United States found that about 10% of jobs already required advanced AI skills, with such positions generally attracting higher pay.
IMF research found a positive net employment impact in AI-affected areas examined, but much of the employment growth was concentrated in lower-paying jobs. Georgieva warned that a shift toward greater reliance on capital and less on human labour could affect government revenue, limiting public authorities’ capacity to help society adapt to AI-driven changes.
Entry-Level Roles Disappearing
Singapore President Tharman Shanmugaratnam echoed concerns about entry-level positions, stating that “the first rung in employment, your first job upon graduation, is now seeing less demand”, attributing this to AI.
Global Growth Slowdown
The UNCTAD Trade and Development Report 2026 projects global economic growth to slow to 2.6% in 2026, down from 2.9% in 2025. Growth in developing economies is projected to fall from 4.7% to 4% in 2026.
UNCTAD’s analysis reveals concerning value distribution in AI infrastructure. In a case study of an advanced AI server rack, post-tax profits accounted for 68% of traced value added, while workers received less than 15%.
Developed economies attracted around 70% of the value of announced greenfield investments in strategic sectors — including semiconductors, energy-transition technologies and AI infrastructure — between 2020 and 2025, according to UNCTAD, widening the gap between developed and developing economies.
Source: CGS-PAM Daily Digest on AI and Emerging Technologies