AI May Shrink Graduate Job Market in Nigeria, IMF Cautions
The International Monetary Fund (IMF) has cautioned that artificial intelligence could reduce job opportunities for young graduates in Nigeria and other developing economies struggling with employment creation.
IMF Managing Director Kristalina Georgieva said demand for entry-level jobs was falling, particularly in technology-exposed industries, raising concerns about graduates’ ability to secure employment after university.
She spoke during a 2026 World Bank and IMF meetings event titled “Small AI: More and Better Jobs,” where officials discussed technology’s growing influence on employment.
Georgieva explained that artificial intelligence was changing workplace demands worldwide, reducing the need for certain routine tasks while creating new opportunities across other sectors.
She estimated that AI could affect approximately 40 per cent of jobs globally through productivity improvements, reduced demand for particular roles or the elimination of some positions.
The IMF chief urged governments to examine labour market developments, improve education systems and expand opportunities for continuous learning as technology reshapes employment requirements.
She warned that workers could no longer depend on a single skill throughout their careers, making regular training increasingly important for long-term professional survival.
Singapore President Tharman Shanmugaratnam also highlighted the growing difficulty graduates face when searching for their first jobs, particularly in sectors where artificial intelligence adoption is accelerating.
“The first job upon graduation is now seeing less demand. The evidence is already very clear,” Tharman said while addressing the gathering.
He warned that developing countries could experience a widening gap between economic growth and employment if governments failed to prepare adequately for technological changes.
According to Tharman, some developing economies were achieving strong growth without creating enough jobs, a problem artificial intelligence could worsen without effective government intervention.
He urged governments to work with private companies to expand graduate recruitment, stressing that losing access to entry-level positions could damage young people’s career prospects.
The Singapore president explained that graduates who struggle to find their first jobs may miss valuable opportunities to gain practical experience and develop workplace competence.
He warned that prolonged delays in securing employment could leave successive groups of graduates competing for limited vacancies, potentially weakening their skills and confidence.
Tharman called for policies that would encourage private sector employers to recruit young graduates and provide them with opportunities to gain relevant professional experience.
He also urged universities and other tertiary institutions to strengthen internships, workplace attachments and practical training to prepare students for changing labour market demands.
According to him, academic qualifications alone may no longer guarantee employment, making it essential for educational institutions to combine classroom learning with practical and industry-relevant skills.
Tharman added that workers must continually update their knowledge as artificial intelligence becomes increasingly integrated into businesses, professional services and other areas of economic activity.
For Nigeria, the IMF’s warning underscores the importance of preparing graduates for technological changes through relevant education, practical training and stronger partnerships between schools and employers.
Although artificial intelligence could create new careers and improve productivity, governments must ensure that young people develop the skills needed to compete for emerging employment opportunities.
