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© 2024 International Monetary Fund
SIP/2024/040
IMF Selected Issues Paper
Asia and Pacific Department
Impact of AI on Singapore’s Labor Market
Prepared by Shujaat Khan*
Authorized for distribution by Masahiro Nozaki
August 2024
IMF Selected Issues Papers are prepared by IMF staff as background documentation for periodic consultations with member countries. It is based on the information available at the time it was completed on July 1, 2024. This paper is also published separately as IMF Country Report No 24/256.
ABSTRACT: Singapore is well-prepared for AI adoption but stands highly exposed to the increasing use of artificial intelligence (AI) technologies in the workplace, due to a large share of skilled workforce. While half of the highly exposed segment of the labor force stands to benefit from the appropriate use of AI to complement their tasks, potentially boosting their productivity, the other half may face greater vulnerability to AI’s disruptive effects due to lower levels of AI complementarity. Estimates suggest that women and younger workers are more exposed to the effects of AI, which, in the absence of appropriate policies, could worsen income inequality in Singapore. Targeted training policies, leveraging on the existing SkillsFuture program, can harness AI’s potential. Additionally, focused upskilling can mitigate the disruptive impact of AI on vulnerable workers.
RECOMMENDED CITATION: Khan, Shujaat. Impact of AI on Singapore’s Labor Market. IMF Selected Issues Paper (SIP/2024/040). Washington, D.C., International Monetary Fund.
| JEL Classification Numbers: | J23, J24, J3, 033, 038 |
| Keywords: | Artificial Intelligence, Labor Market, Job Displacement, Workforce Productivity, AI Exposure, AI Complementarity |
| Author’s E-Mail Address: | skhan3@imf.org |
| JEL Classification Numbers: | J23, J24, J3, 033, 038 |
| Keywords: | Artificial Intelligence, Labor Market, Job Displacement, Workforce Productivity, AI Exposure, AI Complementarity |
| Author’s E-Mail Address: | skhan3@imf.org |
Title Page
SELECTED ISSUES PAPERS
Impact of AI on Singapore’s Labor Market
Singapore
Prepared by Shujaat Khan1
Title Page
SINGAPORE
SELECTED ISSUES
July 1, 2024
Approved By
Asia and Pacific Department
Prepared By Shujaat Khan (APD).
Contents
IMPACT OF AI ON SINGAPORE’S LABOR MARKET
A. Introduction
B. Measuring Occupational Exposure to AI
C. AI Exposure in Singapore’s Labor Market
D. Demographic Implications
E. Policies
FIGURES
1. AI’s Abilities to Conduct Human Tasks Have Increased Rapidly in Recent Year
2. AI Exposure and Complementarity at 2-Digit Occupational Level
3. AI Exposure
4. AI Exposure by Gender
5. Detailed AI Exposure by Gender
6. AI Exposure by Age
7. Detailed AI Exposure by Age
References
“The author would like to thank Masahiro Nozaki, Giovanni Melina, Carlo Pizzinelli, Marina Tavares, Ganchimeg Ganpurev, and colleagues from the Monetary Authority of Singapore.