AI job loss? 12 mn people in US will have to switch jobs, says McKinsey report

Are you scared that AI may replace your job? While AI job loss fears are very much there, other changes too are on the horizon and employees will have to be very flexible to ensure they do not get sacked. However, the reality is that as AI use increases, people's jobs will be threatened and many will actually be pink-slipped.

According to a report by McKinsey, advanced AI is expected to bring big changes to how people work in the U.S. by 2030. This might mean about 12 million people having to find new jobs, and it could potentially automate 30% of the hours worked in the U.S. economy.

What does study say?

The study by McKinsey Global Institute found that around 11.8 million workers might have to switch jobs because of this AI shift. Some might need to start working in completely different industries, while others might find better-paying jobs.

Of course, at the other end of the spectrum, new jobs will be created too. The healthcare field could see a lot of new jobs, with around 5.5 million more by 2030. In the next few years, there will be a higher demand for jobs that need skills in science, technology, engineering, and math (STEM), partly because AI is being used more in different industries.

However, because AI is good at tasks like managing things, jobs like office support and customer service might become less common by 2030. Jobs in food service might also reduce in numbers, but not as much. This might affect women and some groups of people more.

The study mentioned that even though AI is taking over some tasks, it doesn't mean all jobs will disappear. Many jobs will still be there, but the way people work might change.

People who stay in their jobs could see big changes in how they work, with AI doing around 30% of their tasks. This is more than before because AI, like ChatGPT, can do things that need a lot of knowledge and even creativity.

The study said that if AI wasn't there, current technology could do about 22% of the work that people do now. The increase to 30% is because of AI like ChatGPT, which can do things that earlier tech couldn't do.

The study predicted that there might be fewer jobs that pay less than $38,200, but more jobs with salaries of $68,700 or higher. People who earn less might need to change jobs more often.