Women Face Higher Risk of Job Loss by 2030 Due to Automation, McKinsey Reports
According to a recent report by the McKinsey Global Institute, the rise of artificial intelligence (AI) and automation is expected to result in job losses for women at a higher rate than men by the end of the decade. The report reveals that nearly one-third of all hours worked in the United States could be automated by 2030.
Certain industries are anticipated to be the most affected by automation, including food services, customer service and sales, and office support. Women are disproportionately represented in these sectors and tend to hold more low-paying jobs compared to men, making them more vulnerable to job displacement.
The study also highlights that other groups, such as black and Hispanic workers, those without college degrees, and the youngest and oldest workers, are also at a higher risk of needing to find new jobs by 2030.
The report predicts that around 12 million workers will need to transition to new jobs as the industries they currently work in shrink. This figure is 25 percent higher than the institute’s previous prediction in February 2021. Most of these workers will likely be on the lower end of the pay scale and will require new skills to transition successfully.
In addition to the impact of automation, the report identifies other factors that will reshape the labor market over the next decade. These include government investments in green technology, increased demand for healthcare workers due to an aging population, and the structural changes brought about by the COVID-19 pandemic. These trends, combined with advancements in AI, will both increase demand for certain existing jobs and create new opportunities while rendering other jobs obsolete.
The McKinsey report highlights that low-wage workers are particularly vulnerable to job losses by 2030. It estimates that workers earning less than $38,200 could account for nearly 80 percent of potential career transitions during this period. Retail salespeople, cashiers, and other low-wage workers, many of whom are women, face heightened risks.
While advancements in AI may eliminate certain jobs, the report also acknowledges potential positive effects on existing job roles and the creation of new opportunities. For white-collar workers, automation could reduce time spent on routine or technical tasks and allow for more focus on creative or strategic work that AI cannot yet perform. Lawyers and civil engineers are cited as examples of workers who stand to benefit from these changes. However, jobs in more manual fields, such as healthcare or agriculture, involve tasks that are not easily automated.
The report emphasizes the need for employers to address the challenge of training and retraining workers in the skills required for the future. It also highlights the opportunity to recruit from populations that are often overlooked, such as older workers, those without college degrees, individuals with disabilities or employment gaps, and those who have been incarcerated. The authors suggest that AI could be utilized in the hiring process to identify and connect with these candidates.
However, the report acknowledges that current AI-based hiring systems may not handle diverse life experiences or different patterns of work effectively. There is a risk of overlooking candidates with nontraditional backgrounds or treating them unfairly in the hiring process.
It is crucial to note that this research aligns with existing studies demonstrating that women will experience workforce automation differently from men. A Goldman Sachs analysis highlighted that 8 in 10 female workers in the United States, compared to 6 in 10 male workers, hold jobs highly exposed to automation. These jobs involve tasks that can be automated by AI.
The McKinsey report calls attention to the necessity of effectively addressing the training needs of workers, while also recognizing the potential challenges and biases that could arise in AI-based hiring processes. By embracing these issues, employers have an opportunity to mitigate job losses and leverage technology to create a more inclusive workforce.
In conclusion, the McKinsey report warns that women face a higher risk of job loss due to automation by 2030. However, it also emphasizes the potential benefits and opportunities that AI and automation can offer if harnessed effectively. To navigate this changing landscape successfully, it is crucial for employers to invest in training and retraining programs that empower workers for the future of work.
