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The age of generative AI is predicted to result in significant job losses and has sparked paranoia among skilled professionals. In fact, Hollywood script writers are currently on strike demanding AI protection. Surveys conducted by edX, the education platform created by MIT and Harvard, reveal that about half of US CEOs believe that AI could replace most or all of their job responsibilities.
However, historical data from Deutsche Bank going back to the 1750s suggests that new technologies generally create jobs instead of causing mass unemployment. Unemployment rates tend to correlate with economic cycles rather than the introduction of technological breakthroughs. Furthermore, more companies surveyed by the World Economic Forum expect artificial intelligence to drive job growth in their respective sectors rather than resulting in job losses. Areas such as AI and machine learning specialization and cyber security expertise are expected to experience significant growth.
Humanity has continually proven its ability to adapt and create new employment opportunities. The IT revolution, which has been ongoing for three decades, has not significantly impacted unemployment rates, which remain relatively low. However, technology does bring about changes in the nature of jobs. With the potential for AI to accelerate these changes, McKinsey predicts a faster pace of occupational shifts in the coming decade, estimating an additional 12 million job changes by 2030.
So, where will the jobs of the future be? The clear winners are the technology and healthcare sectors. Data for England and Wales shows that the largest number of jobs created in the six years leading up to 2021 were in healthcare. The aging population has resulted in increased demand for healthcare jobs in hospitals, nursing homes, and other health occupations. This trend is expected to continue. In the US, the Bureau of Labor Statistics projects that healthcare and social assistance will account for approximately 45% of all projected job gains by 2032.
The rising demand for entertainment has led to an increase in jobs in pubs, restaurants, and cafes, creating a recruitment crisis in these industries. On the other hand, changing shopping habits and the growth of online sales have resulted in a decline in retail jobs but an increase in warehousing and road transportation. These sectors rank among the top 10 fastest-growing job sectors in England and Wales.
While AI is not the only technology expected to generate employment opportunities in the next decade, the World Economic Forum predicts net gains in big data analytics, environmental technology, and biotech breakthroughs. Those seeking future job prospects should consider focusing on computing, care, and clean energy.
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