[Policy Brief] AI, Automation, and the Future of Work: Rethinking Social Protection

The Social Compass

7/14/20251 min read

Problem
AI and automation are reshaping jobs, threatening routine work and widening inequality. LMICs with weaker reskilling systems risk mass exclusion from decent work.

Evidence

  • 70% of developing-country jobs are vulnerable to automation (WB).

  • Women and low-skill workers face disproportionate displacement (ILO).

  • Lifelong learning accounts (Singapore, OECD) improve mobility.

Policy Options

  1. Portable lifelong learning accounts (LLAs): matched worker + employer contributions.

  2. Earnings insurance: short-term top-ups for displaced workers retraining.

  3. Scaled ALMPs: vouchers, apprenticeships, digital job platforms.

  4. Extend social insurance to gig and platform workers via micro-contributions.

Impact
Future-ready SP smooths transitions, protects displaced workers, and equips economies to harness AI productively.