AI could force 11 million US workers into new careers by 2035

Key Points:

• A McKinsey & Co. report estimates that 11 million U.S. workers, about 6.5% of the labor force, may need to switch to entirely new occupations by 2035 due to automation and AI adoption, despite AI potentially creating more jobs overall.
• The report highlights that while automation could reduce labor demand by 36 million jobs, growth in AI-related and other sectors may generate demand for 40 million jobs, with 25 million workers likely able to remain in their current fields.
• The U.S. labor market is experiencing historic changes driven by factors like Baby Boomer retirements, slower immigration, and economic shocks, resulting in a sluggish job market characterized by low hiring and low turnover.
• Worker confidence is declining, with Glassdoor reporting record lows in its Employee Confidence Index amid worries about job security, economic uncertainty, and AI impacts, while consumer sentiment has dropped to its lowest point in over a decade.
• The upcoming September jobs report is expected to show slower employment growth compared to August, with economists forecasting 95,000 new jobs added and the unemployment rate steady at 4.1%.