Singapore President Warns AI Could Reduce Jobs for Fresh Graduates

Artificial intelligence is creating new economic opportunities, but it may also make it harder for young people to secure their first jobs. Singapore President Tharman Shanmugaratnam has warned that governments need to address the growing pressure AI is placing on entry-level employment.

Speaking on October 12, 2026, during the IMF and World Bank meetings in Bangkok, Shanmugaratnam said the decline in demand for some entry-level positions was becoming an urgent issue, particularly in sectors most exposed to AI.

His warning adds to a growing international discussion about how AI adoption could reshape employment, career development, and economic inequality.

Why Entry-Level Jobs Are at Risk

Entry-level roles often involve tasks that help new employees develop professional skills. These can include research, drafting documents, summarizing information, processing routine requests, and supporting more experienced colleagues.

AI tools can now perform or accelerate many of these activities. As businesses adopt such tools, some may decide they need fewer employees for certain routine tasks or change the skills they expect from junior workers.

However, AI adoption does not automatically mean that every entry-level position will disappear. The impact will vary by industry, employer, and the type of work involved. Some organizations may use AI to improve productivity while creating different responsibilities for new employees.

The concern is that if companies reduce traditional junior roles without creating alternative pathways into the workforce, graduates could find it more difficult to gain the experience needed for long-term careers.

A Challenge for Governments and Employers

Shanmugaratnam urged governments to address the employment challenge rather than allowing the effects of AI to develop without a coordinated response.

Policymakers face several questions. Should education systems change how they prepare students for work? How can businesses be encouraged to train young employees? And what support should be available to workers whose roles are being transformed by automation?

Employers also have a responsibility to consider how AI affects recruitment and training. Junior employees often learn through practical assignments that also help organizations develop future managers and specialists.

If AI removes too many of these learning opportunities, businesses could face a longer-term skills shortage, even if automation initially improves productivity.

Could AI Widen the Economic Divide?

The Singapore president also warned about the possibility of a widening gap between advanced and developing economies.

Countries with strong digital infrastructure, access to computing resources, skilled workers, and investment may be better positioned to benefit from AI. Others could struggle to adopt the technology or prepare workers for changes in demand.

This creates a risk that the gains from AI will not be distributed evenly. The technology could help some economies increase productivity while leaving others with fewer resources to adapt.

For developing economies, the challenge is not simply to adopt the newest AI systems. It is to ensure that these technologies support local businesses, education, public services, and the creation of sustainable employment opportunities.

What This Means for Students and Graduates

Students entering the job market may need to combine subject knowledge with the ability to use AI tools responsibly. Skills such as critical thinking, communication, problem-solving, and domain expertise can help workers contribute beyond tasks that are easy to automate.

Practical experience will also remain important. Internships, project work, apprenticeships, and opportunities to solve real problems can help graduates demonstrate their value to employers.

Learning how to check AI-generated information, protect sensitive data, and understand the limitations of automated systems can also be useful across many professions.

These changes should not place the entire burden on young people. Employers, educators, and governments will need to help create realistic routes into employment as workplace requirements evolve.

How Businesses Can Respond

Companies adopting AI can take practical steps to make the transition more sustainable:

• Review which tasks are being automated and which still require human judgment.
• Provide AI training for junior employees instead of relying only on experienced staff.
• Create structured internships and apprenticeship opportunities.
• Evaluate candidates on problem-solving and practical skills, not only routine task completion.
• Measure whether AI adoption improves productivity while preserving opportunities for professional development.

Such measures can help businesses benefit from AI without undermining the development of their future workforce.

The Bigger Picture

AI is changing not only how work is performed but also how people begin their careers. If traditional entry-level tasks become less common, employers and education systems may need to rethink how new workers gain experience.

The challenge is to ensure that productivity improvements lead to broader economic benefits rather than closing the door on the next generation of professionals.

The debate highlighted at the IMF and World Bank meetings shows that governments are increasingly considering employment and inequality alongside the economic opportunities associated with AI.