The US labor market has undergone profound shifts during the pandemic (2019-2022) and subsequent years, significantly altering the nature of work and the occupations people engage in. A report by McKinsey Global Institute (MGI) Generative AI and the future of work in America (download here) highlights the key trends shaping the labor landscape and outlines implications for public relations (PR) executive leadership.

Occupational Shifts and Automation Impact

The pandemic catalyzed occupational shifts, with 8.6 million workers transitioning to different roles between 2019 and 2022, a 50% increase from the previous three-year period. This transformation was propelled by factors such as remote work adoption and acceleration of automation technologies. Generative AI, capable of advanced natural language processing, further extended automation across various professions.

By 2030, up to 30% of current US workforce hours could be automated, with the potential to reshape industries. However, rather than eliminating jobs, generative AI is poised to augment work in STEM, creative, business, and legal sectors. The greatest impact is anticipated in job categories like office support, customer service, and food services, which may continue to decline.

Influence of External Forces

Federal investments, focused on climate and infrastructure initiatives, will also influence labor demand. The transition to a net-zero economy is predicted to lead to a modest net gain in employment, while infrastructure projects will drive growth in the construction sector. An aging population will contribute to increased demand for healthcare professionals, and e-commerce will bolster transportation services.

An additional 12 million occupational shifts are projected by 2030, signifying a workforce realignment towards higher-wage jobs. Lower-wage workers are more likely to need career shifts, necessitating additional skills development. Women are particularly affected, being 1.5 times more likely than men to transition to new roles.

Implications for PR Executive Leadership

This report carries significant implications for PR executive leadership in shaping communication strategies, fostering employee engagement, and aligning with evolving labor dynamics.

1. Communication and Stakeholder Engagement: PR leaders must proactively communicate the changing landscape to internal and external stakeholders. Clear and transparent messaging about organizational responses to occupational shifts, reskilling initiatives, and strategic adaptation to automation can foster trust and alignment.

2. Employee Engagement and Well-being: Recognizing the potential stress of career transitions, PR executives should design comprehensive support systems. Employee assistance programs, mental health resources, and training opportunities can alleviate anxiety and enhance workforce resilience.

3. Employer Branding and Recruitment: Highlighting adaptive hiring practices that focus on skills and competencies rather than rigid credentials will be pivotal. PR leaders can showcase the organization's commitment to diversity and inclusion by recruiting from overlooked populations, contributing to a positive employer brand.

4. Skill Development and Training: Collaborating with HR departments, PR executives can champion robust training programs. Continuous learning initiatives that align with emerging demands, particularly in high-growth sectors like healthcare and STEM, underscore an organization's commitment to employee development.

5. Change Management: Given the projected pace of change, PR leadership should champion effective change management strategies. Inspiring a culture of agility, innovation, and willingness to embrace new roles can drive successful workforce transitions.

6. Thought Leadership: PR executives have the opportunity to establish their organizations as thought leaders in understanding and navigating the evolving labor landscape. Sharing insights through op-eds, webinars, and industry forums can position the organization as forward-thinking and adaptive.

In conclusion, the dynamic shifts in the US labor market propelled by the pandemic and automation demand strategic leadership from PR executives. By effectively communicating, supporting employees, fostering employer branding, facilitating skill development, managing change, and positioning the organization as a thought leader, PR executives can guide their organizations through this transformative period and ensure a competitive edge in the evolving world of work.