TL;DR:
- AI and automation advancements will disproportionately impact women’s jobs in the US.
- One-third of working hours could be automated by 2030, affecting industries like customer service and food services.
- Approximately 12 million people may lose their jobs, with women in lower-wage roles at higher risk.
- Women’s participation in the workforce may be affected by family obligations.
- Opportunities for women in male-dominated fields like construction and healthcare.
- Upskilling programs and education are vital for women transitioning to new careers.
- Potential for more women in higher-paying jobs as overlooked populations are recruited.
Main AI News:
The rapid progress in generative Artificial Intelligence (AI) and automation technology is expected to have a more pronounced effect on women’s employment in the United States, according to a recent report by the prestigious McKinsey Global Institute.
The report highlights that as AI continues to advance, up to one-third of the working hours in the US economy could be automated by 2030. This transformation is likely to lead to the shrinkage of industries like customer service, office support, and food services, while creating a demand for professionals in STEM, construction, creative, legal, and business fields.
Unfortunately, women are poised to bear the brunt of these changes. The report projects that approximately 12 million people may lose their jobs as a result of these shrinking industries by 2030. Among those affected, women, who are overrepresented in customer service, office support, and food service sectors, are at a higher risk of job displacement. Notably, women constitute a significant portion of workers falling under the lowest wage quintiles, earning between $30,800 to $38,200 or less annually.
The report draws attention to the impact of the Covid-19 pandemic on the labor market, where 8.6 million people changed their jobs. This upheaval set the stage for the current scenario, with the looming effects of AI on employment.
Five major implications of AI on women’s jobs are identified:
- Job Losses: The contraction of certain industries is expected to result in a substantial number of women losing their jobs, particularly those in the lower-wage brackets.
- Family Obligations: Women in lower-wage roles, often burdened with family responsibilities, might find it challenging to switch careers, leading to a slower recovery in female workforce participation.
- Industry Transitions: With AI leading to labor shortages in some sectors, opportunities arise for women to enter traditionally male-dominated industries, such as construction, and address issues of diversity in those fields.
- Upskilling: Women seeking to switch careers will require training and upskilling programs to acquire new skills. Employers need to adapt their hiring and training practices accordingly.
- Higher-Paying Jobs: Despite challenges in training workers, the report indicates potential in recruiting from “overlooked populations,” including women without college degrees or with employment gaps, leading to an increase in women’s representation in higher-paying roles.
As the AI revolution reshapes the job landscape, policymakers, employers, and educational institutions need to collaborate to ensure women are equipped to navigate these changes successfully. By investing in upskilling, fostering inclusivity, and providing support, the US can strive for a future where the benefits of AI are shared more equally, narrowing gender disparities in the workforce.
Conclusion:
The rapid advancement of AI and automation poses challenges and opportunities for the US job market, particularly impacting women’s employment. As certain industries shrink and others grow, women in lower-wage roles may face job losses and difficulties in switching careers due to family obligations. However, there is potential for greater diversity in traditionally male-dominated fields, and investing in upskilling programs and education can open doors to higher-paying jobs for women. Employers and policymakers must collaborate to address these gender employment disparities and ensure a more equitable and prosperous future.
