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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.

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2021 | Chiarello, F., Fantoni, G., Hogarth, T., Giordano, V., Baltina, L., & Spada, I.
Key Takeaway: Text mining and natural language processing techniques can help identify gaps in skills classification systems, ensuring they keep pace with the rapid technological changes that are being driven by Industry 4.0. Understood as the fourth industrial revolution, Industry 4.0 refers to the current wave of advanced manufacturing and industrial transformation driven by connected digital technologies—such as automation, AI, and the Internet of Things—that make production systems more data-driven and intelligent.
2025 | Javed, A., & Usman, N.
Key Takeaway: Italy's green transition is creating a widening skills gap, with environmental regulations and renewable energy adoption reducing demand for low-skilled workers while increasing opportunities for high-skilled labour.
September 14, 2023 | Scanlon, K.
Key Takeaway: What people long for is not higher GDP, but systems they can see, feel, and believe in.
October, 2025 | Sigelman, M., Fuller, J., Tan Levy, E., Saleh, Y., Chen, L., Guilford, G., Kang, SH., Tan, R., Chua, S.
Key Takeaway: Firms that retain older workers are 55 percentage points more likely than others to achieve high overall retention.
2024 | Handa, K., Tamkin, A., McCain, M., Huang, S., Durmus, E., Heck, S., Mueller, J., Hong, J., Ritchie, S., Belonax, T., Troy, K. K., Amodei, D., Kaplan, J., Clark, J., & Ganguli, D.
Key Takeaway: Most workers will experience AI as a reshaping of their daily activities, not a sudden loss of employment.
October, 2025 | Scott-Clayton, J., Minaya, V., Libassi, C. J., & Thomas, J. K. R.
Key Takeaway: Helping recent graduates navigate the job market after college could significantly reduce socio-economic disparities.
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