AI reshaping global labour markets: US, Singapore leading the way

The ninth edition of the Whiteshield Global Labour Resilience Index (GLRI) has revealed that artificial intelligence is reshaping global labour markets, with the US and Singapore leading the way.

Whiteshield released the report in collaboration with Google Cloud at an exclusive event last week at the World Economic Forum (WEF) Annual Meeting in Davos.

Impact of AI

The 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.

It also brought together more than 50 senior policy-makers, CEOs, academics and international organisations.

Published in partnership with the Community of European Management Schools (CEMS) and drawing on a decade of data covering more than 70 indicators, the report revealed important insights into how 118 nations respond and adapt their labour markets to different types of external shocks, including the rise of AI.

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AI leaders

The Whiteshield Global Labour Resilience Index found that while some countries are well positioned to capitalise on AI, the majority are at risk of falling behind.

Leading the 2025 GLRI rankings are the United States and Singapore, recognized for their strong entrepreneurial ecosystems, flexible labour markets, and leadership in AI adoption and innovation.

Sweden follows closely, demonstrating resilience through substantial investments in education and R&D. Notably, some countries in South Asia and the Middle East and North Africa (MENA) region have shown significant advancements, with India, the UAE, and Saudi Arabia benefiting the most from AI investments.

Lagging behind

According to the GLRI report, the US leads in AI investment and innovation, boasting 60% of global AI investments over the last ten years and a quarter of the world’s AI startups.

America’s success is attributed to integrating innovation with economic flexibility to foster dynamic job creation, with California, Massachusetts, and Washington identified among the front-running states.

The report showed that the gap between top-performing and lower-ranking countries has widened, with Sub-Saharan Africa particularly at risk. European countries, including the UK and Germany, hold six of the top 10 positions, showcasing strong overall performance. However, some, like Denmark, Austria, and Luxembourg, are slipping, having dropped out of the top 10.

Technological disruption

In a comment about the transformative role of AI, Google’s Global Head of Government Affairs & Public Policy Karan Bhatia said 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 the potential of AI to create opportunities for all.”

“This year’s report provides actionable insights to address the challenges of technological disruption, economic inequalities, and global crises, ensuring inclusive and sustainable economic growth. By understanding how labour markets adapt and evolve, we can drive innovation and create opportunities that benefit everyone,” stated Sir Christopher Pissarides.

The GLRI concludes with a call to action for policy-makers to proactively shape the future of labour markets by embracing AI-driven, personalised strategies and investing in digital infrastructure and literacy.

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