Indeed CEO highlights aging labour market as bigger concern than AI

Hisayuki "Deko" Idekoba, CEO of Indeed, thinks the labour market's primary concern is not about AI but something more substantial.

"In truth, in developed countries, like those in Europe and the US, there's a significant demographic shift—an aging workforce," Idekoba, who also leads the parent company of Indeed and Glassdoor, Recruit Holdings, mentioned on Wednesday during Semafor's World Economy Summit.

He emphasised that the challenge of replacing retiring workers "has a much bigger effect than AI as of today," Idekoba claimed.

According to Idekoba, Indeed's studies show that the US will see a reduction of 20 million workers over the next half-century. 

"That's around a 5% decrease in workers," he noted. Among this decline, Indeed estimated that 80% is due to an aging populace, with only 20% associated with AI-driven job changes.

Western countries, like the US, Idekoba said, have not fully understood that the labor market is contracting at a moment when there are already unfilled positions in skilled trades.

He highlighted the comparison with Japan, his homeland. Despite Japan's long-standing low birth rate, it has been able to maintain a fairly consistent workforce by increasing the participation of women in the labor sector. Traditionally, Japan saw significantly lower employment rates for women.

In contrast, the US and many Western nations lack a comparable untapped labor pool.

"In the same way the situation is unfolding in Germany, the UK, and other developed nations, the pace is faster," Idekoba remarked. 

"The result is a shortage in filling roles — construction, plumbing, healthcare, electrical work — all crucially vital roles, yet we lack a robust supply chain of workers."

Idekoba noted that these labor shortages will soon pose significant challenges for consumers.

"I don't want to wait two months when there's a leak in my plumbing," he stated. "But that's increasingly common here in the US."