White-collar job listings drop 20% due to AI: World Bank
What's the story
A World Bank report has revealed that generative artificial intelligence (AI) has led to a 20% drop in job listings for highly substitutable white-collar roles in South Asia. The report also notes that jobs requiring AI skills now come with a 30% wage premium. The study highlights urban, entry-level white-collar jobs in business services, commerce, and public administration are most vulnerable to AI disruption.
Job market shift
AI-related job postings in South Asia
Between January 2023 and March 2025, the share of AI-related job postings in South Asia more than doubled from 2.9% to 6.5%. The demand for AI skills also grew at a rate 75% faster than non-AI listings during this period, according to the World Bank's South Asia Development Update. In India alone, an estimated 5.8% of job listings required AI skills with Bengaluru and Hyderabad leading the pack.
Gender disparity
Urban jobs are more exposed to AI disruption
The report also highlights that urban jobs are more exposed to AI disruption than rural ones. It further notes that men are more vulnerable than women, as female participation in the labor force remains low. Despite a generally low-exposure labor market, the distribution of exposure across sectors follows job quality with white-collar professionals facing the highest AI exposure.
Sectoral impact
Recommendations for harnessing AI's potential
The World Bank report suggests that IT, finance, and professional services could witness significant productivity gains due to AI adoption. However, it stresses that reaping these benefits will require adequate digital and energy infrastructure as well as skills and a strong policy framework. The multilateral agency also recommends upskilling and reskilling to improve the quality of human capital in light of this technological shift.