Ageing Economies Could Benefit From Slower AI Job Growth
Work News | New Stardom
Photo by Jacek Dylag
New data from PwC’s 2025 Global AI Jobs Barometer shows that employment in AI-exposed occupations has expanded more gently than in less exposed roles. Rather than signalling weakness, this steadier growth could help ageing societies manage shrinking workforces without overheating labour markets.
PwC’s analysis finds that since 2019, job numbers in AI-exposed occupations have risen by 38%, compared with 65% growth in jobs less exposed to AI. This slower trajectory could be an advantage in countries where the working-age population is in decline, which is a trend that will affect more than half the world by 2050.
The demographic pressure is already mounting. UN projections show the number of people over 60 will double to 2.1 billion by mid-century, while the OECD warns that the old-age dependency ratio will climb from 31% in 2023 to 52% by 2060, creating fiscal strain on pensions and healthcare. The IMF has cautioned that ageing could weigh on global growth, but also points to automation and AI as stabilisers for economies struggling with labour shortages. Governments have long relied on immigration to offset shrinking labour pools, and many are now expanding such policies. PwC’s data suggests AI may be emerging as another tool.
AI’s role may be less about generating dramatic employment booms or busts, and more about calibration. In countries like Japan, Italy and South Korea, where workforces are already contracting, steady but moderate job growth could provide the balance needed to sustain tax bases and public services.
For policymakers, the implications are clear. Pension reform and immigration have long been the main levers for addressing demographic decline, but AI adoption could become an additional tool, raising productivity per worker while keeping employment growth aligned with demographic realities.
The outcome depends on how the technology is deployed. If AI is used only for cost-cutting, it could reduce opportunities rather than support sustainability. But if governments and employers treat AI as a growth strategy, investing in reskilling, broadening access to AI tools and building public trust, the technology could help sustain a more stable future of work.
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