AI could displace 11 million US workers by 2035, report says

A recent report from McKinsey, the renowned management consulting firm, predicts that artificial intelligence and automation could displace around 11 million workers in the United States by 2035. This equates to approximately 7% of all employees in the country. The report estimates that automation could reduce labor demand by 21%—or roughly 36 million jobs—within the next decade.

However, economic growth is expected to allow about 25 million workers to maintain their current positions. Nonetheless, the remaining 11 million workers may need to find new occupations, with the report suggesting that around 770,000 employees would need to switch occupational groups annually, which is nearly three and a half times the historical average rate of workforce transition.

The McKinsey report acknowledges that, like previous technological revolutions, AI and automation may ultimately generate more jobs than they eliminate. However, it warns that this transformation could be the most significant and sustained workforce shift in U.S. history. Even those workers who manage to stay in their current professions will likely need to adapt, as the report predicts that over 70% of workers may require some form of reinvention.

Certain sectors will be more affected than others. Office and administrative support, agriculture, fishing, and forestry are expected to experience the most significant impact from AI and automation. The labor market has been relatively stagnant in recent years, with mass layoffs not materializing despite sluggish job growth and low turnover rates.

Data released recently indicates that job openings reached a five-month low by the end of August, while the rate of voluntary quits remained near a six-year low. Additionally, Glassdoor's Employee Confidence Index dropped to its third record low of the year in September, reflecting concerns over job security, AI, and the broader economic outlook.