ETF Report: AI May Intensify Labour Market Inequalities, Not Destroy Jobs
European Training Foundation finds little large-scale job destruction from AI, but warns of widening inequality as 40-60% of jobs face significant task changes globally.
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AI Won’t Destroy Jobs—But Inequality Looms
The European Training Foundation has found little indication so far of large-scale net job destruction due to AI, according to a new report released on 17 April 2026. However, the findings reveal a more complex picture: between 40% and 60% of jobs globally are expected to undergo significant task changes due to AI.
Algorithmic Management Spreading Across European Workplaces
The report highlights a striking adoption rate of workplace technology: around 79% of European firms use at least one algorithmic management tool. This represents a fundamental shift in how work is monitored and managed, with AI-driven systems increasingly influencing work pace, autonomy, skill use and performance monitoring through the spread of algorithmic management practices from digital platforms to traditional workplaces.
Exposure Gap: High-Income Countries Face Disproportionate AI Impact
A stark divide exists in AI exposure between economies. About 60% of jobs in high-income countries are exposed to AI, versus 26% in low-income countries. This exposure disparity raises concerns about deepening global inequality.
Who Wins, Who Loses: The Inequality Divide
The report identifies clear winners and losers in the AI transition. Higher-educated, higher-income, predominantly male workers are more likely to benefit from AI-driven productivity gains. By contrast, women, older workers and low-skilled employees with routine and low-autonomy jobs face greater exclusion risks, negative bias and deteriorating working conditions from AI.
Entry-level white-collar roles are particularly vulnerable to AI displacement, raising concerns about disrupted career pathways for young graduates.
ETF Leadership Warns Against Market-Led AI Development
ETF Director Pilvi Torsti stated that leaving AI development solely to market forces risks undermining decent work. The ETF Governing Board is chaired by Mario Nava, European Commission Director-General for Employment, Social Affairs and Inclusion.
McKinsey’s US Outlook: More Jobs Than Workers
In a contrasting perspective, a McKinsey Global Institute report predicts AI could require the largest and most sustained workforce transformation in US history. Notably, the McKinsey analysis predicts the United States is likely to have more jobs available in 2035 than today—though the US will have fewer workers in 2035 than today because the population is aging.
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