McKinsey Report Predicts AI Will Displace 11 Million US Workers
McKinsey & Company predicts AI and automation will force 11 million American workers to switch occupations by 2035, though new roles may offset total losses.
A report from the McKinsey Global Institute predicts that artificial intelligence and automation could force 11 million American workers to switch occupations entirely by 2035. This shift represents approximately 6.5% to 7% of the current labor force. While automation is expected to reduce labor demand by 36 million jobs, growth in AI-related fields and the broader economy is projected to generate 40 million new positions.
McKinsey & Company researchers indicate that the transition will most heavily impact low-income workers in retail, sales, transportation, logistics, and office support. Six out of seven affected workers are expected to face substantial income loss and a need for retraining. Senior partner Tanguy Catlin compared the scale of this transition to the disruptions seen during the Covid-19 pandemic.
The report suggests that federal, state, and local governments should implement retraining programs and improve labor-market data to support the workforce. These projections arrive as the United States faces a sluggish job market, with the Bureau of Labor Statistics reporting a five-month low in job openings and the Conference Board reporting a 12-year low in consumer confidence.
