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How the US job landscape is changing—and how to adapt

Jan 31, 2024 - mckinsey.com
The US labor market saw 8.6 million occupational shifts during the three years of the COVID-19 pandemic, with many people moving to better-paying jobs. Most shifts involved people leaving industries like food services, customer service, and office support. Automation, driven by generative AI, is a major factor in this change, and by 2030, tasks that account for 30% of hours worked across the U.S. economy could be automated. However, generative AI is expected to enhance the work of STEM, creative, and business professionals rather than eliminating their roles. The biggest job losses due to automation are likely to occur in office support, customer service, and food service, with an estimated additional 12 million occupational shifts by 2030.

Beyond automation, federal investment in climate and infrastructure will also alter labor demand. Transition to a net-zero economy will likely reduce employment in industries like oil and gas while adding jobs in green industries. Infrastructure projects will increase demand in the construction sector, which is already facing a worker shortage. Healthcare and transportation services are also expected to see increased demand. The future jobs will require higher levels of education and skills, and workers in lower-wage jobs today are up to 14 times more likely to need to change occupations in the future. To navigate this evolving job landscape, individuals can focus on adding and honing social-emotional and digital skills.

Key takeaways:

  • The US labor market saw 8.6 million occupational shifts during the three years of the COVID-19 pandemic, largely driven by automation and generative AI, with the biggest losses in office support, customer service, and food service.
  • By 2030, tasks that currently account for 30 percent of hours worked across the U.S. economy could be automated, potentially leading to an additional 12 million occupational shifts.
  • Despite the automation, the U.S. is expected to continue adding jobs, particularly in sectors like green industries, construction, healthcare, and transportation services, but these jobs will require higher levels of education and skills.
  • Workers, particularly those in lower-wage jobs and women, will need to focus on building social-emotional and digital skills to navigate the evolving job landscape, and employers will need to recruit based on skills and potential rather than just credentials.
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