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Research Paper | Computer Science and Engineering | Volume 15 Issue 3, March 2026 | Pages: 277 - 282 | India
AI-Driven Transformation of Labor Markets: Skill Shifts, Hybrid Employment, and Governance
Abstract: Artificial intelligence (AI) is reshaping employment worldwide, raising questions about skill transformation, hybrid job creation, and the adequacy of policy frameworks. This paper investigates the multidimensional effects of AI adoption on labor markets using a systematic methodology that combines a literature synthesis of ACM, IEEE, and Springer sources (2020-2024) with a realistic dataset simulating cross-sectoral employment trends. Seven industries, Manufacturing, Healthcare, Finance, Education, Transportation, Retail, and IT Services?were analyzed between 2020 and 2024, focusing on AI adoption rates, skill shift indices, hybrid job shares, and employment levels. The results demonstrate a strong correlation between AI adoption and skill transformation (r = 0.71), indicating that workforce adaptability and continuous upskilling are essential for sustaining employability. Hybrid jobs emerged as a central mode of work, with their share rising significantly across all sectors, particularly in IT Services and Healthcare. Employment dynamics proved sector-contingent: Manufacturing and Retail experienced contractions due to automation, whereas Healthcare and IT Services registered net employment growth driven by complementary human?AI collaboration. These findings highlight the dual nature of AI's employment impact, with outcomes heavily moderated by institutional reskilling policies and governance frameworks. The study contributes a replicable methodology for synthesizing interdisciplinary insights and provides empirical evidence supporting the complementarity hypothesis: AI reconfigures rather than eliminates jobs. Future research should expand to cross-country comparative analyses, micro- level hybrid job studies, and computational policy simulations to guide the design of adaptive, equitable labor market policies.
Keywords: Artificial Intelligence, Employment, Skill Transformation, Hybrid Jobs, Policy Frameworks, Human?AI Collaboration
How to Cite?: Amit K. Mogal, Trupti M. Pagar, Arjun K. Mahale, "AI-Driven Transformation of Labor Markets: Skill Shifts, Hybrid Employment, and Governance", Volume 15 Issue 3, March 2026, International Journal of Science and Research (IJSR), Pages: 277-282, https://www.ijsr.net/getabstract.php?paperid=SC26211090305, DOI: https://dx.dx.doi.org/10.21275/SC26211090305