Governments Must Help Fresh Graduates Find Jobs as AI Takes Over Entry-Level Work

Singapore's President Tharman Shanmugaratnam warned on October 12 that AI is making it harder for new graduates to find their first jobs. He said governments need to team up with businesses to help young people enter the workforce. He spoke at a major international meeting in Bangkok hosted by the IMF and the World Bank. Leaders from many countries were there to discuss how AI is reshaping jobs and the economy.

President Tharman said AI is ushering in a whole new era, not just a temporary problem. Even fast-growing countries like China and India are not creating enough jobs to keep up. He warned that if the world stays passive, AI will make the gap between economic growth and job creation even bigger. Governments must act now to make sure AI helps create good jobs rather than simply wiping them out.

A major concern is the shrinking number of entry-level jobs where graduates traditionally get their start. These 'first-rung' roles have been disappearing, especially in technology and other AI-exposed fields. President Tharman urged governments and companies to build lasting programmes — not quick fixes — to help graduates land their first job. Getting that first foothold matters enormously for a young person's entire career.

President Tharman also called on universities to move away from purely academic teaching. Schools should add more hands-on learning through internships, work placements, and work-study programmes. He said data from the United States already shows that having a degree is no longer as linked to career success as it once was. Education systems must become more flexible and practical to prepare students for an AI-shaped future.

World Bank President Ajay Banga said 'Small AI' — simple, affordable AI tools built for local needs — could create many new jobs in developing countries. He pointed to sectors like farming, healthcare, tourism, and construction as areas where Small AI could make a big difference. In India, a platform is being built with Google to help small farmers access better seeds, fertilisers, and insurance. An illiterate farmer can even point a phone at a sick plant and get advice on how to treat it.

IMF Managing Director Kristalina Georgieva said the next phase of AI is about making it available to everyone. She compared this to how mobile phones spread across the globe, reaching even the poorest communities. She said governments must ensure access to electricity, the internet, and online safety to make this happen. She also warned that if AI reduces the number of workers, governments could collect less tax money and struggle to fund public services.

All three leaders agreed that AI is like a slow-moving tsunami heading for every country in the world. They said there is still time to prepare, but only if countries act now. President Tharman said AI changes jobs task by task, giving workers and companies time to adapt while people are still employed. He urged everyone to stay flexible and keep learning, because the future of work is still being written.