Most economists doubt AI boom will create jobs, WEF report finds

Even as artificial intelligence reshapes industries worldwide, a majority of the world's top economists do not expect the technology's expansion to translate into broad-based job creation, according to a new World Economic Forum report released on Tuesday.

The WEF's Chief Economists' Outlook, based on a survey conducted in August, found that 61% of economists do not expect data-center investment to create a large number of jobs globally, even as 97% anticipate AI adoption to increase over the next year and 78% expect data-center spending to contribute to global growth. The report was released at the WEF's Sustainable Development Impact Meetings in New York, running from September 21 to 24.ndtv

A Widening Gap for Young Workers

The findings land amid mounting evidence that AI is unevenly transforming labor markets. Data from outplacement firm Challenger, Gray & Christmas show AI was the leading cited reason for U.S. job cuts for five consecutive months through July 2026. Through June, employers cited AI in more than 101,000 job-cut announcements, nearly double the 54,836 attributed to AI in all of 2025.challengergray+3

The pain has fallen disproportionately on younger workers. An updated Stanford University study published in August found that employment among workers aged 22 to 25 in highly AI-exposed occupations now stands about 19% below where it would be had it kept pace with peers in less-exposed jobs — up from 15% a year earlier. The Federal Reserve Bank of Dallas, analyzing the same period, found the decline stems primarily from reduced hiring rather than increased layoffs.dallasfed+1

Costs Rising, Support Fading

The WEF survey paints a broader picture of economic strain. Around 88% of economists expect food prices to rise, 83% expect electricity costs to increase, and most expect real incomes to fall or stagnate in most regions. Only 28% expect government fiscal support to play the same stabilizing role it did during crises since 2020, down sharply from the 69% who credited such support with cushioning recent shocks.ndtv

Some signs of recovery have appeared in specific sectors. An Investopedia analysis found software development job postings grew about 21% since February 2025, though they remain roughly 23% below pre-pandemic levels, and the rebound has been concentrated among senior-level roles.investopedia

The Absorption Challenge

The tension between AI-driven productivity gains and job displacement has drawn institutional attention. The American Enterprise Institute and the Urban Institute launched a bipartisan Commission on AI and the Future of the American Workforce in June to map scenarios for employment impacts and propose policy responses.nationalaffairs

As Brent Orrell, the commission's co-director, wrote in National Affairs: "Planning for adverse outcomes need not wait until we are certain of AI's net effect".nationalaffairs