Artificial Intelligence Reshaping the Labor Market: Structural Unemployment and Skill Reconfiguration

The rapid integration of artificial intelligence (AI) into economic systems has triggered profound transformations in labor markets, characterized by structural unemployment and the urgent need for skill reconfiguration. This paper examines the dual impact of AI—job displacement and creation—through the lens of technological substitution and innovation. Drawing on empirical evidence from China's industrial robotics adoption and global trends, we argue that AI-driven automation exacerbates skill polarization while simultaneously generating demand for high-skilled roles. Policy frameworks must prioritize adaptive education systems, equitable skill redistribution, and institutional safeguards to mitigate inequality. Emerging solutions such as AI workforce management platforms and embodied intelligent robotics ecosystems exemplify the dual role of technology in reshaping labor dynamics. Our analysis underscores the necessity of interdisciplinary collaboration to address the socio-economic challenges posed by AI.