McKinsey Report: AI to Force 11 Million US Workers into New Careers by 2035

Key points

• McKinsey estimates 11 million workers (6.5% of the labor force) must change occupations by 2035 due to AI.
• Automation is projected to reduce labor demand by 36 million jobs, but AI-related growth will create 40 million new jobs.
• The US labor market is currently in a 'low-hire, low-fire' state, with job openings at a five-month low.
• Consumer confidence hit a 12-year low in September, driven by economic uncertainty and AI fears.
• Glassdoor’s Employee Confidence Index reached a record low in September, with AI-related anxiety rising sharply.

Background

This report arrives amid heightened political focus on AI. In September 2026, President Trump announced the creation of an 'AI Force' and an AI Czar to accelerate US AI development, dismissing safety concerns as a hoax. Simultaneously, the US engaged in joint AI risk discussions with China in New York, signaling a shift toward international coordination on AI standards despite domestic regulatory debates.

How outlets are covering it

CNN and Semafor emphasize the scale of displacement, noting that 11 million workers face career shifts, though McKinsey predicts net job growth. Axios highlights the speed of change, comparing the projected 770,000 annual occupational switches to pandemic-era levels, and notes that 70% of workers will need role reinvention. Digiday focuses on the immediate impact on hiring, with executives admitting they are cutting entry-level roles due to AI capabilities, raising concerns about long-term talent pipelines. While CNN and Semafor stress the 'mobility' challenge, Digiday points to a current 'talent crisis' in marketing and tech sectors.

Why it matters

The report signals a fundamental shift in the US labor market, where the challenge is not job scarcity but worker mobility. With consumer confidence at a 12-year low and employee anxiety rising, policymakers and businesses face pressure to implement retraining programs. The divergence between net job growth and individual displacement highlights the need for targeted support to prevent economic instability and social unrest.

What to watch

The official September jobs report is expected on Friday, with economists predicting 95,000 new jobs and a steady 4.1% unemployment rate. The labor market will likely remain sluggish in the short term, but the long-term focus will shift to workforce mobility and retraining initiatives to manage the 11 million workers facing occupational changes by 2035.