AI Job Losses Will Mainly Impact Low-Wage Workers

What's the story?

• A new report by the McKinsey Global Institute has found that low-wage workers are 14 times more likely to lose their jobs to AI than higher-earning workers.
• The researchers found that higher-paying jobs will be impacted, too, but these workers' roles are more likely to change and shift rather than disappear entirely. 
• The report found that almost one-third of total hours worked in the U.S. could be done by automatic systems by 2030.

Who will be impacted?

• People earning $38,200 a year or less are 14 times more likely to change jobs or careers due to AI. Women and people of color disproportionately hold these jobs.
• A study published in April found that 8 in 10 female workers in the U.S., compared to 6 in 10 men, have jobs that are "highly exposed" to AI.
• Worker displacement by AI is currently highest in customer service, food service, office support, and production. Roles like retail clerk, fast-food server, call center operator, and customer support are under significant threat. These categories make up 39% of all jobs in the U.S.
• According to the report, 11.8 million workers might need to find a new job by 2030. While some may find higher-paying roles in the same company or industry, 9 million may leave their industry entirely.
• Kweilin Ellingrud, a director at McKinsey Global Institute, said they predicted:

"Twenty-one percent of activities can be automated away. When we layer on generative AI, that jumps to 30%." 

Are any industries safe?

• The report found that STEM, healthcare, nursing, green technology, and construction are expected to thrive and will continue to recruit new workers.
• The report stated:

"We see generative AI enhancing the way STEM, creative, and business and legal professionals work rather than eliminating a significant number of jobs outright."

How do you feel about AI in your work place?

—Emma Kansiz