AI will create more jobs than it kills, McKinsey says. The catch: 11 million Americans may need new careers

According to a new report from the McKinsey Global Institute, AI and automation will eliminate about 36 million U.S. jobs by 2035, while growth in other sectors will create approximately 41 million positions. However, the challenge lies in getting workers into these new roles. Roughly 11 million workers, or about 7% of the workforce, may need to switch careers entirely, with a range of 6 million to 16 million.

This shift would be nearly double the historical average of 788,000 workers moving to new occupations annually during the pandemic. The jobs that are shrinking are concentrated in office and administrative support, retail, and transportation, typically lower-paid positions. Conversely, job growth is expected in healthcare, construction, and management.

Richard Florida, author of The Rise of the Creative Class, suggests that service workers will likely move into wellness-focused industries like fitness, dermatology, and Pilates. However, only one in seven displaced workers has an easy path to a growing job, with about 85% requiring a credential. Geographic location also poses a hurdle, as 76% of growing jobs can't be done remotely, particularly roles in hospitals, construction sites, and data centers.

Cities are taking steps to attract talent, such as building universities and offering tax incentives. Some companies, like Citadel founder Ken Griffin, are relocating their headquarters to cities like Miami, committing significant funds to attract top talent.