ARTIFICIAL INTELLIGENCE AND LABOUR MARKET DYNAMICS: AN ECONOMIC STUDY

International Journal of Computer Science (IJCS) Published by SK Research Group of Companies (SKRGC)

Abstract

Artificial Intelligence (AI) has emerged as a transformative technology that is reshaping industries, business operations, and labour markets across the globe. By automating routine tasks, enhancing productivity, and creating demand for new skills, AI is significantly influencing employment patterns and the overall economic landscape. Although AI has created new opportunities in areas such as data analytics, machine learning, and digital services, it has also raised concerns regarding job displacement, skill obsolescence, income inequality, and workforce adaptation. From an economic perspective, understanding these labour market dynamics is essential for formulating policies that promote inclusive growth and sustainable employment. This study examines the relationship between AI adoption and labour market dynamics from an economic perspective, with particular emphasis on employment opportunities, workforce productivity, skill requirements, job displacement, and income inequality. The study adopts a quantitative research approach using primary data collected through a structured questionnaire administered to the selected respondents. Statistical tools such as percentage analysis and correlation analysis are employed to evaluate the relationship between AI adoption and key labour market variables. The findings indicate that AI adoption has a significant positive association with workforce productivity, employment opportunities, and evolving skill requirements, while also highlighting concerns regarding job displacement in routine occupations and widening income disparities. The study emphasizes that the economic impact of AI extends beyond technological advancement, requiring continuous investment in education, skill development, and workforce reskilling to ensure inclusive growth. The study concludes that AI is both an opportunity and a challenge for modern labour markets. While it enhances productivity, innovation, and economic efficiency, its benefits can be fully realized only through appropriate policy interventions, effective labour market reforms, and sustained human capital development. The findings provide valuable insights for policymakers, educators, employers, and researchers in designing strategies that foster a resilient and future-ready workforce in the era of Artificial Intelligence.

References

 

1. 1. Abishek Anand, (2025) “The Impact of Artificial Intelligence on the Workplace.” International Journal for Research Trends and Innovation, Volume No. 10, Issue No. 6, Page No. A809–A839.
   2. Keshav Mishra and Aparna Srivastava, (2024) “Impact of Artificial Intelligence (AI) on Employment of Indian Workers.” International Journal for Multidisciplinary Research, Volume No. 6, Issue No. 5, Page No. 1.
   3. Khaladun Nabi, (2019) “The Impact of Artificial Intelligence (AI) on Workforce in Emerging Economies.” Global Journal of Management and Business Research, Volume No. 19, Issue No. 8.
   4. Puja Tripathi, (2024) “The Impact of Artificial Intelligence on Employment and Workforce Adaptation: A Global Perspective.” International Journal of Multidisciplinary Research, Volume No. 2, Issue No. 5, Page No. 395.
   5. Rajasekar and Sheeja Kumari, (2022) “Futuristic Trends in Artificial Intelligence and Machine Learning.” IIP Proceedings, Volume No. 2, Book No. 16, Chapter No. 22, Page No. 218–226.
   6. Seun Emmanuel Faluyi, (2025) “AI and Job Market: Analysing the Potential Impact of AI on Employment, Skills, and Job Displacement.” African Journal of Marketing Management, Volume No. 17, Issue No. 1, Page No. 1–8.
   7. Shashank Bhargav, (2021) “A Study of the Impact of AI on the Job Market: More Opportunities and More Threats.” Ilkogretim Online, Volume No. 20, Issue No. 4, Page No. 5241–5245.
   8. Yogesh Kumar and Ram Ratan, (2025) “AI’s Influence on Employment Trends in India.” International Journal of Development Research, Volume No. 15, Issue No. 8, Page No. 68902–68906.

Keywords

Artificial Intelligence (AI), Labour Market Dynamics, Employment Opportunities, Workforce Productivity, Skill Requirements, Job Displacement.