Global jobs dilemma? Blame it on technology

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Technology is drastically narrowing the global labor market, the World Bank's chief economist told CNBC at the World Economic Forum in Tianjin.

"There is a tectonic shift taking place in the global labor market thanks to technology. Suddenly, the labor market is becoming a single market, which has never happened before," said World Bank senior vice president and chief economist Kaushik Basu.

"You can sit in a faraway land and work for someone else 5,000 miles away. This is causing a change in structure, and pressures are bubbling up in varied [economic and market] crises that we aren't connecting," he said.

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As robotics and other smart machines make increasing inroads into the workplace and the home, experts worldwide are becoming concerned about the impact of technology on jobs.

In August, a Pew Research report showed sentiment is divided on the impact that artificial intelligence and robotics will have on human employment. 48 percent of experts surveyed "envision a future in which robots and digital agents have displaced significant numbers of both blue- and white-collar workers—with many expressing concern that this will lead to vast increases in income inequality, masses of people who are effectively unemployable, and breakdowns in the social order."

The rest believe the impact would not displace more jobs than it creates by 2025.

"We have to think in terms of long-run job creation strategy much more systematically than we have done thus far," Basu said.

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Recent data from the world's two largest economies that indicate stalling job creation support the report's claims.

In China, the employment rate for college graduates came in at a record low; out of 7.27 million graduates, only 560,000 were employed during the first half of the year. Meanwhile, job creation in the U.S. has disappointed economists for two straights months with both July and August non-farm payrolls reports missing expectations.

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Basu's comments follow a report from the International Labor Organization, the OECD and the World Bank earlier this week, which said that the G-20 faces a large jobs shortfall as a result of the economic hit from the 2007 financial crisis.

But a widening jobs gap isn't the main thing keeping up the Indian economist at night.

"My biggest worry right now is the political situation. There are times when I listen to the evening news and I just want to switch it off." Among the top risks, Basu highlighted the Russia-Ukraine crisis, the expansion of the Islamic State in the Middle East and the Ebola epidemic.

"The tightening of U.S. interest rates, a move that has to happen, that I have to say worries me less than a lot of people because Fed action is going to come lock step with improvements in the U.S. economy. Because the American economy is such an important driver of global demand, it will balance out the negative impact [from the Fed's move]" he continued.