Report Advocates AI-driven Policies to Shape Future of Labour Markets

The study, released in collaboration with Google Cloud, pointed out the substantial costs of inaction, including growing inequality, displacement of vulnerable populations, and missed opportunities for sustainable growth.

However, it said the sub-Saharan region could use its young and rapidly growing population for an AI-driven leap in labour resilience.

It was revealed that the region remains in last place among regional rankings, facing persistent challenges across all dimensions of labour market resilience.

The sub-Saharan Africa includes 12 of the 20 lowest-ranked countries globally, with the lowest scores in both traditional and AI-related metrics.

It was stated that the most resilient labour markets combine traditional labour policies with strategic investments in AI and personalized, data-driven strategies.

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.

According to the GLRI report, the US leads in AI investment and innovation, boasting 60 per cent 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.

Rising inequality, both between and within countries, is identified as a major challenge exacerbated by AI that will need to be addressed with appropriate policies.

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.

“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,” the Global Head of Government Affairs and Public Policy at Google, Karan Bhatia, stated.

Also, the Special Advisor and Director at Whiteshield, Mr Christopher Pissarides, said, “As AI continues to transform industries, the GLRI 2025 highlights the urgency for governments, businesses, and individuals to build resilient labour markets.

“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.”