IMF Working Papers

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

By Micholo Cucio, Tristan Hennig

February 21, 2025

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Format: Chicago

Micholo Cucio, and Tristan Hennig. "Artificial Intelligence and the Philippine Labor Market: Mapping Occupational Exposure and Complementarity", IMF Working Papers 2025, 043 (2025), accessed February 23, 2025, https://doi.org/10.5089/9798229001977.001

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

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.

Subject: Labor, Labor force, Labor markets

Keywords: AI Exposure and Complementarity, Artificial Intelligence (AI), Business Process Outsourcing (BPO), Labor force, Labor Market, Labor markets, Philippines

Publication Details