Singapore President Tharman Shanmugaratnam urged governments to work with private employers to protect entry-level employment, warning that declining demand for first jobs could undermine career progression as artificial intelligence changes labour markets.
Speaking at the 2026 World Bank Group and IMF Annual Meetings in Bangkok, Tharman said the first rung of the career ladder was already becoming harder to access, particularly in technology-related industries, with signs of a broader shift across the economy.
He called for governments to make programmes that encourage companies to hire fresh graduates a permanent part of economic policy rather than measures reserved for periods of crisis.
“We can’t afford to lose that,” Tharman said, referring to the first opportunity for graduates to enter employment and acquire practical experience.
He warned that when young people are unable to secure their first jobs, they lose more than a year of experience. They may also lose opportunities to build professional skills and confidence, while successive graduating classes compete for a limited pool of openings.
The concern is that AI could weaken a traditional route into the workforce. Routine tasks have historically allowed inexperienced employees to enter organisations, learn on the job and gradually progress into more complex roles.
IMF Managing Director Kristalina Georgieva said routine and repetitive jobs were shrinking in the US labour market study discussed at the meeting, while jobs requiring AI skills were attracting higher pay.
Tharman argued that education systems must adapt to this changing demand by placing greater emphasis on applied learning, internships, apprenticeships and periods of workplace experience during tertiary education.
“The link between academic credentials and career prospects is weakening,” he said.
He also cited declining demand for graduates in the United States and a significant reduction in the wage premium associated with college education as warning signs that traditional qualifications may no longer guarantee the same employment outcomes.
The proposed shift would require universities and other tertiary institutions to work more closely with employers so that graduates develop skills relevant to actual workplace requirements.
Tharman said education planners should avoid becoming overly committed to a single model. Some occupations will require deep technical expertise, while others will benefit from broader skills that allow workers to apply AI across different functions.
He also cautioned that AI could create a K-shaped labour market, in which highly skilled workers benefit from productivity gains while a broad middle group faces declining opportunities.
For developing economies, the challenge is particularly acute because they must expand employment opportunities while building the skills needed to adopt new technology.
Chile’s Science and Technology Minister Ximena Lincolao said her country had almost 10% unemployment and needed faster approaches to training. She cited private-sector partnerships, short certification programmes and apprenticeships as ways to help people gain marketable skills without spending many years in formal education before entering employment.
World Bank Group President Ajay Banga said private businesses generate between 75% and 85% of jobs in an economy, underscoring the importance of involving employers in workforce policy.
The debate points to a broader shift in the economics of education, governments may need to focus less exclusively on the number of qualifications awarded and more on whether graduates can obtain jobs, develop practical experience and continue learning throughout their careers.
