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AI and Jobs: Economic Survey 2024-25 Workforce Warning

1 February 20251 min read
NATIONAL AFFAIRSAI and Jobs:Economic Survey2024-25 WorkforceWarning1 February 2025safalsetu.com

Why in the news

The Economic Survey 2024-25 cautioned that AI-driven automation could hit employment and asked the state and private firms to prepare workers for the economic and social shock.

Key facts

  • Both government and industry should bring in AI in a balanced manner to restrict job losses.
  • If companies cannot cope without harming the economy, governments must provide safety nets for workers.
  • Government, private sector and academia should work together so AI innovation serves inclusive and sustainable transformation.
  • Stronger institutions can offer upskilling and mentorship to ready workers for the shifting job market.
  • Policymakers should stress transparency and accountability in AI to check bias and gain social acceptance.

Job-loss estimates

AgencyEstimate
International Labour Organization75 million jobs at risk worldwide from automation
Goldman Sachs300 million jobs open to AI-driven automation
McKinsey30% of today’s work hours automatable by generative AI by 2030

Gender and the digital economy

  • The digital economy can help women close gaps in education access, job opportunities and social bias.
  • Flexible remote work and digital jobs can raise financial independence and empowerment of women in developing countries.

Concerns and way forward

  • Apply AI cautiously, keep worker flexibility and have new jobs and roles ready.
  • Guiding AI is not the same as blocking innovation; the aim is benefit to society without harmful side effects.
  • India still has time to build institutions that handle investment shifts, education changes and labour quality.
  • Large language models score well on benchmarks but their real-world use is weaker, for example in self-driving vehicles.

Exam angle

  • Document: Economic Survey 2024-25 and its stand on AI and employment.
  • Numbers to recall: 75 million (ILO), 300 million (Goldman Sachs), 30% by 2030 (McKinsey).
  • Policy idea: safety nets plus upskilling rather than overregulation.

Test yourself

1. Which agency estimated 75 million jobs at risk globally from automation, as cited in Economic Survey 2024-25 on AI?

The ILO figure of 75 million jobs at risk is the one attributed to it; Goldman Sachs gave 300 million.

2. According to the Economic Survey 2024-25 discussion, by 2030 what share of current work hours could generative AI automate?

McKinsey's estimate quoted is 30% of today's work hours by 2030.

3. The Economic Survey 2024-25 says governments should do what if firms cannot manage AI-led job disruption?

Governments are expected to create safety nets for affected workers.