McKinsey Talks Talent What the labor market isn’t telling you—yet
Jun 25, 2025
The podcast dives into the impact of generative AI on the labor market, highlighting the uncertainty it brings. Discussions focus on how political changes and demographic shifts affect job demand and supply. There's a spotlight on Gen Z's unique workplace expectations, emphasizing their prioritization of company values. The conversation explores the dual role of AI in both augmenting roles and displacing entry-level jobs, while also detailing the challenges faced by those marginally attached to the workforce amid evolving employment dynamics.
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Labor Market Uncertainty Factors
- The labor market is characterized by high uncertainty from various colliding factors like politics, pandemic impacts, demographics, and AI.
- Aging workforces and generative AI are key long-term influences altering labor force dynamics globally.
Generative AI Augments Jobs
- Generative AI doesn't fully replace jobs, but augments many, especially knowledge work like marketing and software.
- Physical presence tasks, like nursing, remain less impacted by AI currently.
AI's Effect on Entry-Level Jobs
- Entry-level and internship opportunities are declining partly due to AI's impact on automating coding tasks.
- Job seekers are leveraging AI skills to stand out and adapt, even in roles like fast food workers updating resumes.