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Development in the Age of Automation

Publisher H Heuristics
Published Jan 13, 2026
Length 22 Pages
SKU # HHE20818865

Description

Automation and AI are transforming the global labor market at historic speed. The World Economic Forum projects that by 2025, automation will displace 85 million jobs while generating 97 million new roles, producing a net increase but masking severe transitional disruption. The defining challenge is not simply job quantity, but the accelerating shift in skill requirements, as routine cognitive and manual work becomes increasingly automatable.

This structural transformation risks amplifying inequality. Workers with advanced digital skills are capturing wage premiums and new opportunities, while low-skilled populations face displacement and stagnant mobility. The report highlights that 50% of all employees globally will require reskilling, yet adult learning systems remain underdeveloped. Without coordinated investment, automation could widen socio-economic divides within nations and between regions.

Developing economies face distinct vulnerabilities. While fewer jobs are currently automated in low-income countries, long-term exposure is higher due to reliance on labor-intensive manufacturing and growing reshoring trends. The risk of “premature deindustrialization” threatens the traditional development pathway from agriculture to industry. This report assesses the policy frameworks, education models, and transition strategies required to ensure automation supports inclusive growth rather than deepening global inequality.

Table of Contents

22 Pages
1. The Automation Wave and Global Economic Restructuring
2. Job Displacement vs. Augmentation
3. Occupations at Highest Risk Worldwide
4. The Emerging Skills Crisis
5. AI Fluency and the Wage Premium
6. Inequality Dynamics and Labor Share Decline
7. Vulnerability of Developing Economies
8. Premature Deindustrialization and Reshoring
9. Reskilling Models: Singapore, Germany, and Beyond
10. Policy Pathways for Inclusive Automation

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