Whiteshield and Google present the world’s most resilient labour markets

International management consulting firm Whiteshield and Google have released the 2025 edition of the Global Labour Resilience Index, shedding light into the world’s most resilient and future-proof labour markets – with the United States, Singapore and Sweden scooping this year’s podium places.

Now in its 9th edition, the Global Labour Resilience Index assesses how countries respond to and adapt their labour markets to different types of external shocks, including geopolitical and supply chain disruptions, and major technology changes such as artificial intelligence (AI).

The 2025 report gives special attention to AI, which on the one hand has the potential to boost workforce availability, quality, and efficiency, but on the other hand also arrives on the stage with several challenges and even long-term risks. The authors highlight possible concerns about job insecurity, people displacement, and increased wage inequality, among others.

In response to the opportunities and challenges of AI, proactive and forward-looking policies are crucial to ensure labour markets remain resilient, adaptable, and capable of distributing AI’s benefits equitably across society.

The top 10 labour markets

Leading the 2025 ranking are the United States and Singapore, recognized for their strong entrepreneurial ecosystems, flexible labour markets, and leadership in AI adoption and innovation. Sweden follows closely, demonstrating resilience through substantial investments in education and research & development. In 2024, the top spots were taken by Switzerland, Denmark and the Netherlands.

The US leads in AI investment and innovation, boasting 60% of global AI investments over the last ten years and a quarter of the world’s AI startups. America’s success is attributed to integrating innovation with economic flexibility to foster dynamic job creation, with California and Washington identified among the front running states.

European countries, including the United Kingdom and Germany, hold six of the top 10 positions, showcasing strong overall performance. However, some, like Denmark, Austria, and Luxembourg, are slipping, having dropped out of the top 10.

Notably, some countries in South Asia and the Middle East and North Africa (MENA) region have shown significant advancements, with India, the UAE, and Saudi Arabia benefiting the most from AI investments.

While the Middle East showed progress overall, significant disparities persist between GCC and non-GCC countries in labour market resilience. The region demonstrates strength in AI-related metrics and strategic AI investments, but nearly half of its countries lag in AI cyclical adaptive resilience, reflecting challenges in AI penetration and entrepreneurship.

Across the board, Whiteshield and Google said that the gap between top-performing and lower-ranking countries has widened, with Sub-Saharan Africa particularly at risk.

The call to action

In their report, the authors highlight the growing pace of change that is impacting labour markets, and the need for policy action. The report stresses the urgency of the shift that is taking place, highlighting the substantial costs of inaction, including growing inequality, displacement of vulnerable populations, and missed opportunities for sustainable growth.

Whiteshield and Google call on policy makers to “proactively shape the future of labour markets by embracing AI-driven, personalized strategies and investing in digital infrastructure and literacy.”

“As AI continues to transform industries, the Global Labour Resilience Index highlights the urgency for governments, businesses, and individuals to build resilient labour markets,” stated Christopher Pissarides, director at Whiteshield. “By understanding how labour markets adapt and evolve, we can drive innovation and create opportunities that benefit everyone.”

Karan Bhatia, Google’s Global Head of Government Affairs & Public Policy, added: “The Global Labour Resilience Index offers a roadmap for countries to navigate the new era. It highlights pathways for inclusive, forward-looking policies that will not only address the challenges of automation but also harness the potential of AI to create opportunities for all.”

Measuring resilience

In defining what a resilient labour market is, Whiteshield and Google said: “A resilient labour market not only generates sustainable demand for a wide range of occupations and provides quality work but also adapts efficiently its structure to meet changing demands for skills and occupations. Such markets are inclusive, sustainable, and capable of withstanding disruptions, such as the one presented by AI, due to their inherent flexibility and adaptability.”

To measure ‘resilience’, Whiteshield and Google looked at a number of structural and cyclical factors, including demographics, the macroeconomic environment, and the absorptive and transformative capacity of the labour market and employees.

The Structural sub-index focuses on the fundamental, long-lasting characteristics that underpin a country’s overall capacity for labour resilience. These factors tend not to change quickly and include the depth and maturity of the economy, the stability of its institutions, its demographic makeup, and the degree to which it is exposed or vulnerable to global trade.

The Cyclical sub-index measures how effectively a country’s labour market can respond to disruptions – both immediate shocks and longer-term changes driven by evolving technologies like AI. The Cyclical sub-index therefore reflects both near-term responsiveness and the longer-term adaptability required to navigate the full “disruption cycle”.