IMF Warns AI Could Reduce Graduate Job Opportunities in Nigeria, Others
The International Monetary Fund (IMF) has warned that artificial intelligence (AI) could make it harder for young graduates in Nigeria and other developing countries to secure their first jobs.
IMF Managing Director Kristalina Georgieva said demand for entry-level positions was already declining, particularly in industries exposed to AI. She urged governments to prepare workers for changing employment demands.
Speaking at a 2026 World Bank and IMF meetings event titled “Small AI: More and Better Jobs,” Georgieva explained how artificial intelligence was changing employment patterns worldwide.
She said approximately 40 per cent of jobs globally could be affected by AI through increased productivity, reduced demand for certain roles or the complete elimination of some positions.
According to Georgieva, governments must review education policies, strengthen skills development and encourage lifelong learning to help workers remain relevant as technology continues transforming workplaces.
Her warning comes as developing economies face growing pressure to create sufficient employment opportunities for young people entering the labour market after completing their education.
Singapore President Tharman Shanmugaratnam also expressed concern about declining demand for graduates seeking their first jobs, particularly in industries increasingly exposed to artificial intelligence.
“The first job upon graduation is now seeing less demand. The evidence is already very clear,” he said.
Tharman warned that developing countries could experience a growing disconnect between economic growth and job creation if governments failed to respond effectively to technological changes.
He observed that some developing economies were recording strong growth without corresponding improvements in employment, warning that artificial intelligence could worsen the situation without appropriate policies.
The Singapore president urged governments to collaborate with private businesses to create employment opportunities for fresh graduates and protect their access to meaningful professional experience.
He explained that losing entry-level positions could prevent young people from acquiring the practical experience needed to develop their careers and compete effectively in the labour market.
Tharman cautioned that prolonged unemployment could leave successive groups of graduates competing for limited opportunities while weakening their skills, confidence and prospects for future employment.
He called for government policies that would encourage private sector employers to recruit fresh graduates and provide opportunities for workplace learning and professional development.
The Singapore president also urged universities and other tertiary institutions to strengthen practical training, internships and workplace attachments to prepare students for changing employment requirements.
He argued that academic qualifications alone were becoming less reliable as guarantees of employment, making practical experience and relevant skills increasingly important to career development.
Tharman added that workers would need to update their knowledge and skills continuously as artificial intelligence became more widely integrated into businesses and economic activities.
For Nigeria, the warning highlights the need to connect university education, vocational training and employment policies with the changing demands of industries increasingly adopting artificial intelligence.
Although AI offers opportunities to improve productivity and create new occupations, governments, educational institutions and employers must prepare young people for the changing workplace.
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