The Future of Work: How Artificial Intelligence Is Shaping Job Markets and Employment Trends

The rapid evolution of Artificial Intelligence (AI) technologies is transforming global labor markets, reshaping the nature of work, skill demands, and employment structures. This study explores how AI is influencing job displacement, creation, and transformation across sectors and skill levels, with particular attention to the implications for developing economies such as the Philippines. Drawing on key contributions from scholars including Brynjolfsson and McAfee, Frey and Osborne, and Acemoglu and Restrepo, the literature highlights the dual impact of AI: the automation of routine jobs and the emergence of new roles demanding higher-order cognitive and digital skills. While studies project significant workforce disruptions, they also emphasize AI’s potential to enhance productivity and create hybrid human-machine job models. The findings underscore the need for proactive policies focused on education reform, reskilling initiatives, labor protections, and algorithmic accountability. The paper concludes that inclusive adaptation to AI requires coordinated efforts from government, industry, and educational institutions to ensure equitable and sustainable employment in an AI-driven future.