The rise of AI, globalization, demographic shifts, and economic restructuring has fueled concerns about the emergence of a “useless class”—individuals displaced from the workforce with little chance of reintegration. This literature review examines how labor displacement manifests differently across economies, shaped by automation, offshoring, financialization, and shifting labor demands. In OECD countries, job polarization due to AI and deindustrialization threatens middle-class employment, increasing inequality and political instability. In non-OECD countries, automation erodes informal and low-skill jobs, while globalization exacerbates economic precarity. Social consequences range from identity crises to mass migration. While OECD nations experiment with UBI and reskilling programs, developing countries face structural constraints. Without proactive policies, economic polarization will deepen, benefiting capital owners while displacing workers. Addressing these challenges requires coordinated global strategies that balance technological progress with equitable labor transitions.

Authors:
Hoang-Nam Tran, Tokushima University, Japan
Thi-Nhien Nguyen, Vietnam National University of Agriculture, Vietnam

About the Presenter(s)
Dr. Hoang-Nam Tran is currently an Associate Professor at Research Center for Higher Education, Tokushima University, Japan.

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https://www.linkedin.com/in/%E9%BB%84%E5%8D%97-%E9%99%B3-11bb2248/

Connect on ResearchGate
https://www.researchgate.net/profile/Nam-Tran-8

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