IMD World Talent Ranking 2024
AI replacing human labor could exacerbate exclusion in certain major economies
Other major findings:
• First-placed Switzerland remains at the forefront of talent competitiveness
• Singapore’s spectacular ascent over the last decade takes it from 18th place to second
• Nordic economies Denmark, Norway, and Sweden absorb disruptions to bounce back from 2023 lows, signaling the robustness of their talent pipeline
Lausanne (Switzerland), 19 September 2024 – Switzerland, Singapore, and Luxembourg have been revealed as the most talent-competitive countries in the world by the IMD World Talent Ranking (WTR).
The 2024 WTR’s accompanying report, “The socio-economic implications of AI in the workplace,” has also exposed increased inequality for higher-income economies as early adoption of AI starts to replace the workforce.
Now in its 11th edition, the ranking measured 67 countries and combined WTR survey data from the IMD World Competitiveness Center (WCC) with external sources, setting both in the context of findings from the International Labour Organization (ILO). The report concludes that those economies in which senior executives consider AI to be most visible in the workplace by the way it is replacing people are also those economies where discrimination is increasing.
Such economies were identified to be higher-income ones (Japan, Thailand, Singapore, the UK,and Canada) and therefore more likely to (i) experience significant disruptions early on (i.e., during the AI adoption phase) and (ii) reap AI’s benefits in the long term.
Rising discrimination levels could damage economies’ attractiveness to highly skilled overseas staff, even if they are offset by these other factors as they would tarnish its talent attraction and talent retention, the report said.
“Discriminatory practices – whether based on race, gender, age, disability, or sexual orientation – are not going to help attract and retain talent. Beyond that, attracting and retaining highly skilled talent fosters innovation and maintains an economy’s competitive edge,” said José Caballero, WCC Senior Economist.
The report also touches on (i) how much AI is seen to enhance tasks or provoke quiet quitting in different economies, (ii) the likelihood of men’s versus women’s employment being affected by automation, and (iii) how talent competitiveness in the AI era requires a swift reassessment of educational systems and corporate training programs to ensure workers possess the skills needed.
“Fragmentations on a political and social level only make AI debates more involved, as they take us further from any consensus on what policies should exist. Such divides are particularly pernicious when it comes to achieving education reform, which is part and parcel of AI’s best use,” said Arturo Bris, Director of the WCC.
The WTR combines 31 pieces of statistical data and survey responses (“criteria”) spanning the development, retention, and attraction of a domestic and international highly skilled workforce. Each is grouped into one of three areas – Investment and Development, Appeal, or Readiness (“factors”).
Switzerland is able to remain at the top by dominating the Investment and Development and Appeal factors. Singapore’s steady rise is driven by its robust performance in Readiness (specifically of its talent pool). Luxembourg relies on a strong Investment and Development approach to talent competitiveness.
Ghana, Nigeria, and Puerto Rico were measured in the WTR for the first time this year.
For more details, and to view the WTR report in full, click here.
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