The US home to world’s most resilient labor market
The United States ranks as the world’s most resilient labor market, with AI playing a huge role. That is according to this year’s edition of the Global Labor Resilience Index, compiled by international consulting firm Whiteshield in collaboration with Google.
The index, which is now in its 9th edition, ranks how countries respond to and adapt their labor markets in the face of various types of external shocks. Those include the major technological advances of our day like AI, but also more traditional shocks like geopolitical and supply chain disruptions.
The US landed in the top positions this year, a stark contrast with last year’s edition, where the US was ranked 14th. That is despite the 2024 report noting that North America in general had higher average labor resilience than any other region of the world.
AI is big, but other areas of focus too
The United States stands out with its dynamic entrepreneurial environment. It is home to around 60% of all global AI investment a quarter of the world’s AI startups. Entrepreneurship, R&D investment, and technology advancement are all prioritized to a high degree in the US business environment.
Singapore, in second place, distinguishes itself through exemplary governance (ranked first in the World Governance Index) and comprehensive AI integration across its economy supported by its highly skilled workforce.
In third place is Sweden, which has distinguished itself as a leader in comprehensive social safety nets, universal education, and solid economic policies. Other Western European countries – like Germany, the Netherlands, Finland, and Switzerland – were also in the top 10.
Though the US came out on top, the report also shows that rising inequality is a pressing threat to market resilience, with AI accelerating this trend. That includes inequality between US states, with some seeing far more investment than others.
Within the US, certain states triumph over others: California, for example has enjoyed significantly higher labor market resilience than poorer states like Louisiana, Mississippi, or West Virginia. Other stronger states include Massachusetts, Washington, and New York.
In fact, California and New York are home to more than half all AI-related patents in the country while Virginia, Texas, California, Ohio and Illinois and New York are home to 50% of the total number of data centers. This indicates some states are getting the upper hand in innovation while others are lagging behind.
Need for AI-focused policies
AI is set to be an enormous boost to economies, but realizing AI’s full potential requires targeted policies. Nations without established AI industries risk becoming consumers rather than innovators, missing economic gains while bearing social costs. Traditional economic value retention mechanisms may be less effective in the AI economy.
While global cooperation is important, so too are domestic strategies. That will need to include building foundational AI infrastructure, including physical and digital architecture like energy, internet, data centers, and cloud computing.
Beyond that, cooperation like shared research, talent pools, and regional hubs can also accelerate AI development. And at an international level, AI governance frameworks must balance innovation with accessibility, including shared standards, fair resource access, and technology transfer, tailored to different development levels.
But it should be noted that the debate surrounding AI regulation is a significant point of contention. For example, the United States – and especially the Republican Party – has criticized Europe for a perceived excess of regulations.
This tension was palpable at the Paris AI Summit last week, where discussions highlighted the delicate balance between fostering responsible AI development and avoiding overly burdensome regulations that could impede progress and potentially cede leadership in this crucial technological domain.
While the European Commission has made recent statements indicating a willingness to loosen regulations in order to boost innovation (especially in AI), Vice President JD Vance, a guest speaker at the Paris AI Summit, pulled no punches in a speech that sought to assure the world that the US will fight to remain ahead of Europe when it comes to AI.
