Overview

Regions across the OECD face a range of labour market challenges and are undergoing a significant transformation. An ageing workforce, low labour productivity growth, persistent regional disparities, pervasive labour shortages, and new technologies will require both people and places to undergo transitions. This report, Job Creation and Local Economic Development 2024: The Geography of Generative AI, examines the health of regional and local labour markets, including through new estimates on regional labour shortages and their drivers. New tools and technologies, such as Generative AI, could help policymakers address these challenges and seize new opportunities for job creation and local economic growth. This report provides novel evidence of the geography of the impact of Generative AI on jobs across the OECD. It examines which places within countries and types of workers are most exposed to Generative AI and contrasts this with the labour market impact of past waves of technologies that drove automation. Finally, it discusses local and place-based actions and policies for seizing the benefits of Generative AI, such as boosting productivity, mitigating labour shortages and demographic change, as well as for mitigating risks of job displacement.

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