Artificial Intelligence and the Philippine Labor Market: Mapping Occupational Exposure and Complementarity

Micholo Cucio and Tristan Hennig

No 2025/043, IMF Working Papers from International Monetary Fund

Abstract: This paper combines labor force survey microdata with measures of occupational AI exposure and complementarity to examine the potential impact of recent advancements in AI on the Philippine labor market. We find that around one third of workers are highly exposed to AI with around sixty percent of those also rated highly complementary, indicating potential productivity gains. College-educated, young, urban, female, and well-paid workers in the services sector are most exposed. Business process outsourcing (BPO) is identified as the sector with the highest proportion of jobs at risk of displacement. Addressing regulatory gaps, infrastructure needs, and workforce reskilling is crucial to maximize benefits and mitigate negative impacts.

Keywords: Artificial Intelligence (AI); Labor Market; Philippines; Business Process Outsourcing (BPO); AI Exposure and Complementarity; AI exposure; foster AI adoption; workforce reskilling; BPO employment; BPO export revenue; Labor markets; Labor force; Digitalization; Global; Asia and Pacific (search for similar items in EconPapers)
Pages: 34
Date: 2025-02-21
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