In an exclusive event held alongside the World Economic Forum (WEF) Annual Meeting in Davos, Whiteshield launched the 9th edition of the Global Labour Resilience Index (GLRI) in collaboration with Google Cloud. Developed in partnership with the Community of European Management Schools (CEMS), the report draws on a decade of data and over 70 indicators to assess how 118 countries respond and adapt their labour markets to external shocks, including the rise of artificial intelligence (AI). The findings reveal that while some nations are poised to leverage AI for economic growth, many risk falling behind.
The launch event, titled “The Transformative Impact of AI on Global Economies & Labour Markets,” was chaired by Nobel Laureate Sir Christopher Pissarides, Special Advisor and Director at Whiteshield, alongside Anna Koivuniemi, Head of Google DeepMind Impact Accelerator. The gathering brought together over 50 senior policymakers, CEOs, academics, and international organizations to discuss the evolving role of AI in labour markets worldwide.
According to the report, the most resilient labour markets are those that integrate traditional labour policies with strategic AI investments and data-driven workforce strategies. The United States and Singapore top the 2025 GLRI rankings, recognized for their strong entrepreneurial ecosystems, flexible labour markets, and leadership in AI adoption. Sweden follows closely, demonstrating resilience through substantial investments in education and research & development (R&D). Notably, countries in South Asia and the Middle East and North Africa (MENA) region, including India, the UAE, and Saudi Arabia, have made significant advancements due to strategic AI investments.
AI is transforming the global workforce by enhancing job availability, efficiency, and quality. It has facilitated the rise of new occupations such as AI data architects, human-AI interaction designers, and AI ethics officers. However, AI also presents challenges, including job displacement, wage inequality, and job security concerns. The GLRI underscores the importance of proactive policies to ensure that AI-driven changes foster inclusive economic growth rather than exacerbating existing inequalities.
The United States leads in AI investment and innovation, having attracted 60% of global AI investments over the past decade and housing a quarter of the world’s AI startups. States such as California, Massachusetts, and Washington are recognized as frontrunners in AI-driven job creation. However, the report highlights widening inequality, both within and between nations, as a pressing challenge that requires policy intervention. Sub-Saharan Africa, in particular, remains vulnerable, with many of its economies struggling to integrate AI into labour markets effectively.
European nations hold six of the top ten positions in labour market resilience, with Germany excelling in AI integration. However, some countries, such as Denmark, Austria, and Luxembourg, have dropped out of the top ten due to declining AI adoption and policy stagnation.
The report identifies three primary pathways to labour market resilience:
- Traditional Pathway – Countries like Sweden, Norway, and the Netherlands emphasize strong social safety nets, stable economic policies, and education investments.
- AI and Innovation-Driven Pathway – Led by the US, this approach fosters a dynamic entrepreneurial environment and prioritizes AI-driven R&D.
- Blended Pathway – Exemplified by Singapore, this model combines robust governance with strategic AI investments to balance stability and innovation.
A key takeaway from the GLRI is the need for personalized, citizen-centric policies driven by AI, big data, and advanced analytics. Emerging technologies such as blockchain and the Internet of Things (IoT) are also playing an increasing role in labour market adaptation, from education and job placement to workforce productivity and lifelong learning.
Europe remains a leader in labour market resilience, with Northern and Western European nations outperforming their Eastern and Southern counterparts. Germany ranks 5th globally due to its AI integration, while Moldova, at 113th, lags significantly. Although Europe excels in AI regulation and entrepreneurship, nearly one-third of its countries struggle with transformative capacity.
Sub-Saharan Africa faces significant challenges, ranking lowest among global regions. The region includes 12 of the 20 lowest-ranked countries in the GLRI. Despite this, its youthful and growing workforce presents a unique opportunity for AI-driven transformation. However, systemic policy and infrastructure gaps continue to hinder progress.
The Middle East and North Africa (MENA) ranks fourth globally, with notable disparities between Gulf Cooperation Council (GCC) countries and non-GCC nations. While strategic AI investments are strengthening the region’s resilience, challenges in AI entrepreneurship and adaptation persist.
Asia-Pacific (APAC) secures third place, with Singapore, China, and South Korea leading the region. Singapore ranks 2nd globally due to its advanced governance, digital skills, and AI entrepreneurship. China excels in AI adoption at the firm level but faces governance challenges, while Japan and Australia maintain high rankings due to strong economic fundamentals.
Commenting on the transformative role of AI, Karan Bhatia, Google’s Global Head of Government Affairs & Public Policy, stated, “As AI reshapes the global workforce, the GLRI offers a roadmap for countries to navigate this new era. 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.”
Sir Christopher Pissarides added, “This year’s GLRI provides actionable insights to address technological disruptions, economic inequalities, and global crises. By understanding how labour markets evolve, we can drive innovation and create opportunities that benefit everyone.”
The report concludes with a call to action for policymakers to embrace AI-driven, personalized strategies and invest in digital infrastructure and literacy. The urgency of this transition is underscored by the potential consequences of inaction, including growing inequality, job displacement, and missed opportunities for economic growth. Moving from reactive responses to proactive strategies will be key to ensuring that AI’s transformative potential benefits all workers and economies worldwide.
