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A curated resource of recent research on trends shaping Canada's labour market.

Artificial intelligence and the changing demand for skills in the labour market

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Key Takeaway
Artificial intelligence adoption is shifting the demand for skills.

 

More than a third of vacancies in countries within the Organisation for Economic Co-operation and Development were for roles identified as having high exposure to artificial intelligence (AI). Exposure to AI changes the way that work is organized, shifting the demand for skills for high-exposure occupations.

As AI adoption increases, so does demand for the skills associated with developing and maintaining AI systems. Still, most workers who use AI won’t require familiarity with how the systems work.

For occupations exposed to AI, an analysis of in-demand skills showed that the ones most sought-after are related to management and business skills.

An analysis at the business level found that exposure to AI is associated with decreased demands for general office software knowledge, business skills, management skills, and emotional skills.

Production skills had a modest demand increase for companies that need to fill roles with a high level of exposure to AI. This includes skills related to both production and technology, as well as physical skills.

New
2024 | Green, A.
Key Takeaway: AI is changing the skills employers look for in many occupations. The report finds that while most workers won’t need specialized AI skills, there is a growing demand for communication, social, language, and emotional skills in occupations that are highly exposed to AI.
New
2026 | OECD Publishing
Key Takeaway: Rather than eliminating occupations, AI is changing tasks and the types of skills that employers demand. Workers will need foundational, digital, complementary, and specialized skills, supported by accessible education and training.
New
2026 | Trammell, P., & Jones, C. I.
Key Takeaway: Using the value of a statistical life (VSL) as an alternative way to assess changes in living standards, this study suggests that improvements in U.S. living standards since 1940 may have been much greater than conventional measures indicate. The study’s VSL estimates suggest a five- to sevenfold increase in lifetime utility—a measure of overall well-being over a person’s lifetime—compared with roughly a doubling using conventional consumption-based measures.
New
2026 | Faryaar, H.
Key Takeaway: The workforce is aging: over the last 20 years, the share of workers aged 55 and over in Canada has more than doubled. Firm-level data offer insights into aging patterns. Although workforces are aging across sectors and regions, patterns vary by industry, region, and firm size.
2026 | OECD Publishing
Key Takeaway: AI is beginning to support vocational education and training (VET) by helping people to identify needed skills, develop training programs, and update qualifications. According to the report, AI works best when it supports human expertise rather than replacing it.
2026 | Sweet, M., & Scott, D.
Key Takeaway: Using Canadian survey data collected in 2021 and 2023, researchers found that although the rate of telework has decreased since the pandemic, uncertainty remains about its long-term trajectory and its effects on individuals and communities. This uncertainty makes it difficult to plan for the future.
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