Artificial Intelligence’s Growing Impact on Jobs: Insights and Concerns.

Artificial Intelligence’s Growing Impact on Jobs: Insights and Concerns.

Thank you for reading this post, don't forget to subscribe!

In recent times, the rising threat of Artificial Intelligence (AI) displacing numerous jobs has become a significant global concern. A fresh report sheds light on the potential implications of AI on the US job market and identifies the sectors that may face the greatest impact. According to this report, generative AI alone could automate up to 30 percent of the total work hours in the US economy by 2030.

The study, conducted by the McKinsey Global Institute under the title “Generative AI and the Future of Work in America,” highlights the profound potential of AI to accelerate economic automation. It also stresses that generative AI is more likely to augment the work of professionals in fields such as STEM, creative endeavors, business, and legal professions, rather than immediately eliminating a large number of jobs. However, the automation’s major effects are expected to be felt in job categories like office support, customer service, and food service employment. This could lead to a need for an additional 12 million occupational transitions in the US by 2030.

Impact on Various Occupations

The report predicts substantial job gains in the healthcare industry, estimating a demand surge for 3.5 million positions, including health aides, health technicians, and wellness workers. Additionally, there is a projected 23 percent increase in the demand for STEM jobs by 2030.

Notably, despite recent tech-sector layoffs making headlines, the report underlines that the long-term demand for tech talent remains strong across all business sectors as digitization continues to advance. Industries such as banking, insurance, pharmaceuticals, and healthcare are actively pursuing digital transformations, driving the demand for tech workers with advanced skills. The transportation services category is also expected to witness a 9 percent job growth by 2030.

On the flip side, office support, customer service, and food services are at the forefront of potential job losses due to automation. The report estimates a decline of 1.6 million clerical jobs, along with significant losses for retail salespersons, administrative assistants, and cashiers.

Vulnerability of Low Wage Workers

Low-wage workers in the US, earning less than $38,200 a year, are notably more susceptible to requiring occupational changes in the next decade compared to higher-wage earners. As industries shift and shrink, the economy is anticipated to lean towards higher-wage job opportunities. To adapt to these changes successfully, workers in low-wage jobs will likely need to acquire additional skills.

Moreover, the report raises a concern about the potential disproportionate impact on women, who are expected to be 1.5 times more likely to move into new occupations than men. Currently, women are significantly represented in office support and customer service roles, which could see a decline in job opportunities by 2030.

Anticipating Occupational Shifts

While the report acknowledges the lingering question of whether generative AI will lead to job losses, it refrains from outrightly ruling out short-term impacts. Technological advancements often cause disruptions, but they historically fuel economic and employment growth in the long run.

The projected occupational shifts could reach a total of 12 million by 2030, with food services, customer service, sales, office support, and production work accounting for nearly 84% of the changes. In contrast, occupations in business, legal professions, management, healthcare, transportation, and STEM are expected to remain resilient and experience minimal shifts.

OECD’s Concerns and Worker Fears

The Organisation for Economic Co-operation and Development (OECD) is apprehensive that over a quarter of jobs in its member countries could be easily automated in the forthcoming AI revolution. A significant portion of jobs at highest risk involves tasks that rely on more than 25 out of 100 skills and abilities considered easily automatable by AI experts.

The OECD surveyed 5,300 workers across seven countries, finding that three out of five workers are worried about losing their jobs to AI within the next decade. Despite this concern, the survey reveals that two-thirds of workers currently employing AI claim that automation has made their jobs less hazardous or tedious.

To navigate the evolving landscape, OECD Secretary General Mathias Cormann emphasizes the importance of policy actions that prioritize workers’ preparation and the optimization of AI-related opportunities. Measures such as minimum wages, collective bargaining, and safeguarding workers’ rights are deemed crucial to address AI’s impact on wages and ensure a balanced outcome

Leave a Comment

Your email address will not be published. Required fields are marked *

Amazon India Today's Deals

Scroll to Top