Two phenomena in today’s world that governments around the world cannot afford to ignore are the increasing elderly population and the simultaneous rise in artificial intelligence (AI). These two seem to be at the opposite ends of the spectrum, as older people often find it difficult to adopt to rapidly evolving technologies.
In India, the rapid development of AI that is suspected to threaten several low- and middle-level white-collar jobs, along with a steady rise in elderly population and a lack of a pension security, makes it essential to implement targeted policy measures.
The latest World Economic Outlook report of the International Monetary Fund (IMF) has now called for the need to form targeted policies for older workers to stay in good stead.
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How AI is Changing Labour Market
The report discussed several issues affecting the elderly; one of them being the impact of AI on their employment opportunities. The report said that AI is changing the labour market and holds significant potential to enhance workers’ productivity. However, it has also suggested that some skills will soon become obsolete, potentially leading to unemployment among people with those skills, especially workers aged 55 years and more.
According to the report, older people are less likely to switch to the new technology to change jobs. That is where something needs to be done at the policy level, it added.
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Without policy-level intervention, AI-related job market disruption will result in ‘premature workforce withdrawal, reduced labour market participation, switching to less suitable roles’ to put more pressure on economies with a higher percentage of older workers, the report said.
One notable point highlighted in the report is that older workers, who are already engaged in occupations expected to expand with AI will benefit if they can effectively use new technologies.
The report divides the occupation into three categories, and the risks due to AI.
High exposure and low complementarity (HELC): It includes those with a high risk of labour substitution
High exposure and high complementarity (HEHC): It involves those who are likely to experience productivity and wage boosts
Low exposure: Those who are least affected by AI adoption
The report added that HELC vacancies have shrunk in areas in the US where AI has a significant presence in the job market. Conversely, the HEHC category has not been as greatly affected as the vacancies in HEHC either increased slightly or remained stable.
The argument is equally valid for the younger workers, the report added.
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Workers’ Education And Impact Of AI On Jobs
The report also underlined the connection between a worker's level of education and the impact of AI on jobs. According to the report, workers with less education tend to hold jobs with less exposure to AI and thus would be less vulnerable to the impact of AI on jobs.
However, those with ‘tertiary education’ will be more exposed to AI due to the kind of occupation, usually in HEHC occupations, but will be positively affected by AI.
The report said that with a certain level of education, people working in the HEHC category will benefit from AI. Older adults are concentrated more in this category compared to the younger cohort, it said.
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Over the past three decades, age-friendly jobs have increased, such as jobs with less demanding physical activity, lower levels of job hazards, and a moderate pace of work. These align with the needs of older workers to stay active and keep cognitive abilities alive.
The report also mentioned US data, which suggests that AI is not entirely precarious. It has its benefits. It is compatible with working from home and requires less physical work. In addition to this, AI-exposed jobs offer higher earnings compared to low AI-exposure jobs, making it suitable and appealing for older adults.
However, these jobs also involve decision-making and higher responsibilities, which older workers may find stressful and may not want to continue working.
Despite all this, most of the older workers are engaged in jobs that can benefit from AI, the report added. Thus, there is a need to create policies and improve job conditions, such as stress management programmes, offering flexible work arrangements, and providing remote working options, to help keep older workers employed for a longer period, the report further said.
