Labour market disruption
Economists view disruption and displacement in labour markets as one of the risks through which rapid advances in AI may affect citizens and reduce social welfare.170
ENTITY
3 - Other
INTENT
3 - Other
TIMING
3 - Other
Risk ID
mit1377
Domain lineage
6. Socioeconomic and Environmental
6.2 > Increased inequality and decline in employment quality
Mitigation strategy
1. Prioritize and fund large-scale, inclusive reskilling and upskilling programs with a focus on human-AI complementary skills such as complex problem-solving, ethical oversight, and creative thinking, specifically targeting populations and occupational groups most exposed to automation risk, such as clerical and entry-level workers. 2. Establish robust social and economic safety nets, such as Universal Basic Income (UBI) or augmented unemployment support, to provide financial security for individuals experiencing job displacement and to mitigate the exacerbation of income inequality resulting from AI-driven productivity gains. 3. Implement public-private governance and regulatory frameworks to mandate a managed, phased adoption of AI technologies, ensuring that the economic gains from increased productivity are distributed equitably across the workforce and that organizational change management prioritizes human-centered design for new human-AI collaboration roles.