AI creates more local jobs than it makes redundant
Local Labor/Left and SJ city gov't keep looking for ways to slow down and regulate what is turning out to be a big local jobs engine.
McKinsey report on future impact of AI undermines extremist alarmism from local Labor/Left
McKinsey's new report on the future impact of artificial intelligence on employment seems somewhat better than what we've been reading in recent years.
Some interesting points:
In its baseline scenario for the US up to 2035, automation will reduce labor demand equivalent to about 36 million jobs, while AI, aging, the care economy, investment in "the physical," and other drivers would generate demand equivalent to 41 million.
Besides, those 36 million don't mean 36 million layoffs: much of the automated tasks get absorbed by growth within the same professions. A large part of software development gets automated > it's more profitable > more demand and more software is produced > more work in the part that remains for humans.
Their thesis is that much of those workers could remain within their occupation but taking into account that the job content changes. Another, smaller part would have to move to different professions.
The transition will be tough for many: Only one in seven workers would have a direct path to a growing profession with little retraining and no salary loss; 41% would need a significant transition and 45% would face much more complicated paths (worse salary, going through unemployment and studying, etc.).--@antonello on X
AI-related employment is surging (half a million new high-paying jobs) from Sunnyvale to Portland, Maine
AI-linked roles have accounted for more than +750,000 new jobs created in the US since 2023, according to LinkedIn estimates. This surge has been led by:
Data annotators, with +282,000 new positions created;
Data center jobs at +117,000;
AI engineers at +105,000.
As a result, these 3 categories have accounted for +504,000 new jobs. AI-related positions also offer significantly higher pay, with a median salary of ~$180,000 on LinkedIn, compared to $80,000 across all jobs.
This comes as the rapid expansion of AI infrastructure, particularly the buildout of data centers, is driving stronger demand for labor.--@KobeissiLetter on X
Follow Opportunity Now on Twitter @svopportunity
We prize letters from our thoughtful readers. Typed on a Smith Corona. Written in longhand on fine stationery. Scribbled on a napkin. Hey, even composed on email. Feel free to send your comments to us at opportunitynowsv@gmail.com or (snail mail) 1590 Calaveras Ave., SJ, CA 95126. Remember to be thoughtful and polite. We will post letters on an irregular basis on the main Opp Now site.