As artificial intelligence continues to transform industries, a new report released at the World Economic Forum (WEF) in Davos reveals a stark divide between countries poised to capitalize on AI-driven labor market shifts and those at risk of being left behind.
The 9th edition of the Global Labor Resilience Index (GLRI), published by policy firm Whiteshield in collaboration with Google Cloud, provides a decade-long analysis of 118 national labor markets, highlighting key trends, opportunities, and challenges.
Leading the 2025 GLRI rankings are the United States and Singapore, recognized for their strong entrepreneurial ecosystems, flexible labor markets, and leadership in AI adoption.
The U.S., accounting for 60% of global AI investments over the past decade, has cultivated an environment conducive to AI-driven job creation, particularly in innovation hubs like California, Massachusetts, and Washington. Singapore, known for its strategic governance and business-friendly policies, has successfully combined AI advancements with robust workforce initiatives. Sweden follows closely, with substantial investments in education and research and development bolstering its labor market resilience.
Despite AI’s promise, many nations struggle to adapt. The GLRI report finds that Sub-Saharan Africa remains the least resilient region, with 12 of the 20 lowest-ranked countries. Limited digital infrastructure, policy gaps, and inadequate education systems pose significant hurdles.
Meanwhile, the Middle East and North Africa (MENA) region shows progress, with countries like the UAE and Saudi Arabia benefiting from AI investments, though disparities remain between Gulf Cooperation Council (GCC) and non-GCC nations.
Europe continues to perform well, with six of the top ten most resilient economies. However, while Germany excels in AI integration, others like Denmark, Austria, and Luxembourg have slipped in rankings. The Asia-Pacific region maintains a strong position, with China, South Korea, and Japan demonstrating firm-level AI adoption and investment in emerging technologies.
The GLRI underscores AI’s potential to boost workforce availability, efficiency, and job creation in fields such as AI data architecture, human-AI interaction design, and AI ethics.
However, concerns over job displacement, rising wage inequality, and the need for digital literacy remain pressing. “As AI reshapes the global workforce, the GLRI offers a roadmap for countries to navigate this new era,” said Karan Bhatia, Google’s Global Head of Government Affairs & Public Policy. “It highlights pathways for inclusive, forward-looking policies that will not only address the challenges of automation but also harness AI’s potential to create opportunities for all.”
The report highlights the need for nations to adopt tailored strategies to ensure labor market resilience in the face of rapid technological advancements. It identifies three distinct pathways that countries can take to navigate the challenges and opportunities presented by AI.
The Traditional Pathway, exemplified by Sweden, Norway, and the Netherlands, focuses on strengthening social safety nets, investing in high-quality education, and maintaining stable economic policies to create a secure and adaptive workforce.
In contrast, the AI and Innovation-Driven Pathway, as seen in the United States, prioritizes a dynamic, entrepreneurial environment with strong investments in AI research and development to drive economic growth and technological leadership.
Meanwhile, the Blended Pathway, demonstrated by Singapore, integrates the best of both worlds by combining strong governance and institutional stability with strategic AI investments to ensure long-term resilience.
The report underscores the urgency of proactive policy interventions, emphasizing that inaction could lead to widening inequalities, job displacement, and economic stagnation. Governments must embrace AI-driven, personalized workforce strategies, invest in digital infrastructure, and implement forward-thinking policies to harness the transformative power of AI while ensuring inclusive and sustainable growth.
AI’s growing role in labor markets demands personalized, citizen-centric policies, utilizing big data and analytics to tailor workforce strategies. Technologies such as AI, blockchain, and IoT are already being integrated into education, job searches, and productivity enhancement.
Sir Christopher Pissarides, Nobel Laureate and Special Advisor at Whiteshield, emphasized the urgency of action: “As AI continues to transform industries, the GLRI 2025 highlights the need for resilient labor markets. This year’s report provides actionable insights to address technological disruption, economic inequalities, and global crises, ensuring inclusive and sustainable growth.”
The report urges policymakers to embrace AI-driven strategies, invest in digital infrastructure, and implement policies that mitigate the risks of automation. Without proactive measures, nations risk increasing inequality, workforce displacement, and economic stagnation.
While AI presents both unprecedented opportunities and challenges, the GLRI report makes clear that governments, businesses, and individuals must work together to ensure labor market resilience. “The time is now to move from reactive measures to proactive strategies that harness AI’s transformative potential for the benefit of all,” the report concludes.
