How could the McKinsey Global Institute's labor projections affect the Bureau of Labor Statistics?
BLS analysis could be influenced by MGI's projections on AI and job shifts The research from the McKinsey Global Institute, which is now part of McKinsey, projects significant shifts in the US labor market due to technological change. Specifically, the MGI estimates that technological and economic changes could reduce labor demand by the equivalent of 36 million jobs over the next decade. This analysis, which details the impact of AI on various roles and the need for new skills, provides detailed input that could inform the Bureau of Labor Statistics' own future labor market analyses and projections.
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How it reaches Bureau of Labor Statistics
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Research from the McKinsey Global Institute estimates that technological and economic changes could reduce labor demand by the equivalent of 36 million jobs over the next decade. Conversely, economic growth, including in AI-related industries, could create demand for about 41 million jobs. The report notes that office and administrative support roles face particular exposure, with roughly 80% of current work hours potentially automated by 2035.
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The MGI research provides detailed projections on future labor trends, such as the potential reduction of labor demand by 36 million jobs over the next decade due to AI, and the need for workers to change occupations at a rate of roughly 770,000 per year. This specialized analysis could be used by the Bureau of Labor Statistics when formulating its own labor market outlooks.
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The facts so far
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- Technological and economic changes could reduce labor demand by the equivalent of 36 million jobs over the next decade.fortune.com
- Roughly 770,000 workers a year may need to change occupations over the next decade.fortune.com
- Office and administrative support roles face particular exposure to automation, with roughly 80% of current work hours potentially automated by 2035.fortune.com
- About 85% of growing employment requires a credential or certification.fortune.com
Why it matters
The Bureau of Labor Statistics is the primary source of official data on the US labor market, making its projections critical for policymakers, businesses, and the public. The MGI's detailed, forward-looking analysis on AI's impact and the resulting skills gaps offers a specific, data-driven perspective on how the labor market is expected to evolve, which could influence how the BLS frames its official reports.
This research is part of a broader conversation about the future of work, where private sector analysis often precedes or complements government data. The MGI's findings highlight that while AI may automate tasks, it also creates new responsibilities and requires workers to adapt, signaling a complex transition rather than simple job elimination.
What we don't know yet
- Will the Bureau of Labor Statistics explicitly reference the MGI's findings in its official reports?
- How will the BLS adjust its metrics to account for the rapid rate of occupational change projected by MGI?
What would change this answer
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About Consumer Price Index
If technological change reduces labor demand, how might that affect wage growth and, consequently, the Consumer Price Index?
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Who else could feel it
Other possible ripples from the same event.
- NvidiaLikelyNvidia may see increased demand for AI hardware due to the scale of AI integration
- Ernst & YoungPossibleAI-driven labor shifts could increase demand for professional services from Ernst & Young.
- LinkedInPossibleMcKinsey's integrated research could refine LinkedIn's view of future job skills
Reporting
- fortune.comMonday
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Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.