One of 10 in United States might have to switch occupations after pandemic

One in 10 U.S. workers—about 17 million, all told—will likely be forced to leave their jobs and take up new occupations by 2030 as COVID-19’s aftereffects destroy huge swaths of low-paying positions in a labor market that was primed for disruption before the pandemic.

Women, minorities, the young and the less educated will probably be the hardest hit by what consultant firm McKinsey & Co. foresees in a new report as an unprecedented hollowing out of low-wage work in retail, hospitality and other industries.

“COVID is a big disrupter,” Susan Lund, a Washington-based partner at McKinsey Global Institute, the consultant’s research arm, said in an interview.

The 17 million Americans are part of the more than 100 million people worldwide that the institute forecast will need to leave their jobs and enter new lines of work by the end of the decade. That will amount to about one in 16 workers in the eight leading economies covered by the study, which includes China, Japan, Germany and the U.K., as well as the U.S.

In a more-than-130-page paper, the institute sees the pandemic accelerating three trends that will continue to upend the labor market in the years ahead: more remote work and working from home; increased e-commerce and a bigger “delivery economy;” and stepped-up business use of artificial intelligence and robots.

“The forces COVID-19 unleashed mean there could be a lot less demand for front line workers in food service, retail, hospitality, entertainment,” Lund said.

That prompted McKinsey to lift its pre-pandemic estimate of how many workers will need to change occupations by 28%, or 3.8 million, to 17 million.

The fallout from the virus will also make it harder for many workers to make the switch. “The transition they’ll need to make will be even larger and more daunting,” Lund said.

“It used to be the case that a lot of low-wage workers would go from fast food, say, into retail, then retail into hospitality,” she added. “But now those jobs in aggregate are declining, so most of them will have to move up to a middle-skilled job, say in an office setting or manufacturing, or even higher.”

That will put a premium on the U.S. significantly expanding the options workers have to learn new skills, Lund said.

The projected hollowing out of lower-pay positions will come after decades of polarization of the labor market which saw middle-class jobs in manufacturing and other industries decline, even as employment at the bottom and top of the income scale rose.

Another trend that could be reversed, according to Lund: the increased concentration of jobs in the world’s biggest cities that was seen after the financial crisis.

COVID-19—and the rise in remote working it’s brought about—is prompting some workers and companies to decamp to smaller, less crowded cities. While office vacancy rates have surged in places like San Francisco, they’ve declined in smaller ones like Charlotte, N.C., according to the report.

“COVID-19 brought massive disruption to the workforce,” the McKinsey research unit said.

Please enable JavaScript to view this content.

Story Continues Below

Editor's note: You can comment on IBJ stories by signing in to your IBJ account. If you have not registered, please sign up for a free account now. Please note our updated comment policy that will govern how comments are moderated.

3 thoughts on “One of 10 in United States might have to switch occupations after pandemic

    1. I can count on one hand how many Americans worked in housekeeping when I worked in the hotel industry. Americans don’t want the jobs undocumented immigrants have. They’re usually too entitled to work that hard. I’d also never work housekeeping either, but that’s just the American in me.

    2. Wesley, this is among the most popular and most easily disprovable of canards. Americans are willing to subject themselves to black lung in coal mines. They’re willing to haul trash and sewage as sanitation workers. They’re willing to slop buckets of vomit around as nurses and orderlies. They’re willing to have their own limbs blown off as they work in off-shore oil rigs, or to serve their country.

      They are willing to work any sort of jobs if the pay is enough, but cannot justify working them if it is artificially low. If corrupt corporations can skirt regulations (because corrupt politicians let them) and offer poverty wages to illegals (for whom $5/hour to pick fruit is still a reasonable wage), then count the artificially induced revenue as extra profit, of course they’ll do so. And they’ll do it at the expense of “entitled” Americans who would be happy to take those jobs (think about summer work for teenagers!) but also are subject to things like income taxes (and tax audits), car insurance payments, and maximum occupancy laws.

      How well is sneering at the deplorables really working for you and the political wing you clearly adhere to, as evidenced by your daily scoldings? Keep calling them “entitled” and expect those 80M+ “Nazis” only to grow in number.

{{ articles_remaining }}
Free {{ article_text }} Remaining
{{ articles_remaining }}
Free {{ article_text }} Remaining Article limit resets in {{ count_down }} days.