IMF report says AI reduced Asia job demand by 10% in exposed roles

Employer demand for roles heavily exposed to artificial intelligence has fallen by nearly 10 per cent across Asia since late 2022, according to a study by the International Monetary Fund.

The drop in hiring, measured against less-exposed occupations following the public launch of ChatGPT in November 2022, reveals how rapidly automation is reshaping regional employment. However, the IMF found that the initial decline in job postings for vulnerable roles has now stabilised, as Asian businesses move from initial task disruption toward integrating advanced digital tools into their core operations.

The findings stem from an analysis of approximately 40 million online job advertisements collected across 19 Asian economies for the IMF’s Regional Economic Outlook for Asia and Pacific.

How AI is shifting job demand in Asia

Rather than causing blanket job losses, the technology is altering the specific capabilities employers seek. While open requisitions for traditional roles in exposed fields decreased over the last two years, companies that actively adopt AI tools are growing their overall headcount faster than non-adopters.

Around six per cent of firms across Asia now explicitly list AI skill requirements in their hiring posts. Demand is rising fastest for technical capabilities that help businesses translate automated models into practical corporate productivity:

According to the IMF, businesses using these technologies are seeing stronger labour demand across all occupational levels, indicating that AI serves as a multiplier for human productivity when implemented strategically.

What the report means for India and regional job growth

For emerging economies such as India, the immediate exposure to AI displacement remains relatively low. A substantial portion of India's workforce is employed in agriculture and manual sectors that are less vulnerable to software automation.

This structural layout gives India a clear advantage and a strategic window. With an expanding working-age population and robust national digital infrastructure, India is strongly positioned to guide its workforce into tech-enabled, high-value manufacturing and service sectors. The challenge for developing Asian nations—including Indonesia and the Philippines—lies in ensuring that training systems keep pace with changing employer requirements.

The report highlights that technological adoption alone will not guarantee job creation. To turn disruption into sustainable economic growth, governments and enterprises must invest heavily in reskilling programmes, higher education updates, and modernised labour market institutions. With timely investments in workforce training, Asian economies can harness AI to accelerate national productivity and expand employment across emerging industries.