AI Business
8h ago
McKinsey report predicts AI will create more jobs than it displaces, but many workers may need to retrain
Oct 3, 2026
AI Summary
A McKinsey Global Institute report forecasts that AI and automation will eliminate 36 million U.S. jobs by 2035 while generating 41 million new positions. However, approximately 11 million workers may need to switch careers, highlighting challenges in workforce mobility and skill gaps.
- AI and automation are expected to reduce demand for about 36 million U.S. jobs by 2035, while creating around 41 million new jobs.
- The report emphasizes that the main challenge will be worker mobility rather than job scarcity, with an estimated 11 million workers needing to leave their current occupations.
- Most affected workers will need to transition to entirely different fields, with about 770,000 needing to switch careers annually, significantly higher than historical averages.
- Job losses are concentrated in lower-paid sectors such as office support, retail, and transportation, while growth is anticipated in healthcare, construction, and management.
- Credential requirements pose a significant barrier, as 85% of new jobs will require some form of credential, and only one in seven displaced workers has a clear path to a growing job.
- Geography also plays a role, as 76% of new jobs cannot be performed remotely, necessitating physical relocation for many workers.
- Cities are adapting to attract talent, with significant investments in educational institutions to support workforce development and innovation.
job creationworkforcecareer transitioneconomic impacthealthcare