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In brief
The future of work after
COVID-19
McKinsey Global institute
February 18, 2021 | Report
2
Hello!
3
The physical dimension of work
is a new factor shaping the
future of the work, brought to
the fore by health and safety
considerations.
We group occupations in a novel way based on physical closeness, the frequency of human interactions, and where
work is done. This analysis shows that the pandemic’s short- and long-term impact is concentrated in four work arenas
with high levels of proximity: leisure and travel venues (including restaurants and hotels) employing more than 60
million in the eight countries, on-site customer interaction including retail and hospitality (150 million), computerbased
office work (300 million), and production and warehousing (more than 350 million). In less dense work arenas such as
outdoor production sites, the pandemic’s effects may fade quickly. Other work arenas such as medical care and personal
care with high level of physical proximity may also see less change because of the nature of the occupations.
5
➜ First, hybridremote work could continue
➜ the growth in share of e-commerce and the “delivery
economy,”
➜ Use of automation and artificial intelligence
COVID-19 accelerated three trends that could persist to
varying degrees after the pandemic with different
implications for work.
6
Businesses and policy makers can accelerate
many of the future of work imperatives that
were already clear before COVID-19.
7
8
100M
workers may need to
switch occupations by 2030
inthe eight focus countries
China, France, Germany, India, Japan, Spain, the United Kingdom, and the United States.
Together, these eight countries account for almost half the global population and 62
percent of GDP. 10
11
Remote work and virtual meetings are
likely to continue, albeit less intensely
than at the pandemic’s peak, with
knock-on effects for real estate,
business travel, and urban centers
12
13
➜ Considering only remote work that can be done
without a loss of productivity, we find that about 20
to 25 percent of the workforces in advanced
economies could work from home between three and
five days a week. Advanced economies, with a greater
share of jobs in the computer-based office arena,
have a higher potential for remote work than
emerging economies (Exhibit E3).
14
15
Will COVID-19 change
the geography of
work?
17
E-commerce and other virtual
transactions are booming, creating
increased demand for gig work
18
19
COVID-19 may propel faster adoption of
automation and AI, especially in work
arenas with high physical proximity
20
2/3
Proportion of executives expecting
to increase investment in
automation and AI
Work arenas vary widely in terms of the
potential long-term impact of COVID-19
22
In the computer-based office work arena, 70 percent of time
could be spent working remotely without losing
effectiveness, compared to most other arenas, where as
little as 5 to ten percent of work could be done remotely.
23
24
The mix of occupations within economies may shift, with little or no job
growth in low-wage occupations
25
4.3M
Possible fall in customer service
and food service jobs in the
United States, compared to
prepandemic estimates
27
28
Up to 25 percent more workers may need to
switch occupations than before the pandemic,
and the retraining challenge may be harder
29
30
31
32
Companies and policy
makers can help facilitate
workforce transitions
Thanks!
34

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The future of work after covid‑19

  • 1. In brief The future of work after COVID-19 McKinsey Global institute February 18, 2021 | Report
  • 2. 2
  • 4. The physical dimension of work is a new factor shaping the future of the work, brought to the fore by health and safety considerations.
  • 5. We group occupations in a novel way based on physical closeness, the frequency of human interactions, and where work is done. This analysis shows that the pandemic’s short- and long-term impact is concentrated in four work arenas with high levels of proximity: leisure and travel venues (including restaurants and hotels) employing more than 60 million in the eight countries, on-site customer interaction including retail and hospitality (150 million), computerbased office work (300 million), and production and warehousing (more than 350 million). In less dense work arenas such as outdoor production sites, the pandemic’s effects may fade quickly. Other work arenas such as medical care and personal care with high level of physical proximity may also see less change because of the nature of the occupations. 5
  • 6. ➜ First, hybridremote work could continue ➜ the growth in share of e-commerce and the “delivery economy,” ➜ Use of automation and artificial intelligence COVID-19 accelerated three trends that could persist to varying degrees after the pandemic with different implications for work. 6
  • 7. Businesses and policy makers can accelerate many of the future of work imperatives that were already clear before COVID-19. 7
  • 8. 8
  • 9. 100M workers may need to switch occupations by 2030 inthe eight focus countries
  • 10. China, France, Germany, India, Japan, Spain, the United Kingdom, and the United States. Together, these eight countries account for almost half the global population and 62 percent of GDP. 10
  • 11. 11
  • 12. Remote work and virtual meetings are likely to continue, albeit less intensely than at the pandemic’s peak, with knock-on effects for real estate, business travel, and urban centers 12
  • 13. 13
  • 14. ➜ Considering only remote work that can be done without a loss of productivity, we find that about 20 to 25 percent of the workforces in advanced economies could work from home between three and five days a week. Advanced economies, with a greater share of jobs in the computer-based office arena, have a higher potential for remote work than emerging economies (Exhibit E3). 14
  • 15. 15
  • 16. Will COVID-19 change the geography of work?
  • 17. 17
  • 18. E-commerce and other virtual transactions are booming, creating increased demand for gig work 18
  • 19. 19
  • 20. COVID-19 may propel faster adoption of automation and AI, especially in work arenas with high physical proximity 20
  • 21. 2/3 Proportion of executives expecting to increase investment in automation and AI
  • 22. Work arenas vary widely in terms of the potential long-term impact of COVID-19 22
  • 23. In the computer-based office work arena, 70 percent of time could be spent working remotely without losing effectiveness, compared to most other arenas, where as little as 5 to ten percent of work could be done remotely. 23
  • 24. 24
  • 25. The mix of occupations within economies may shift, with little or no job growth in low-wage occupations 25
  • 26. 4.3M Possible fall in customer service and food service jobs in the United States, compared to prepandemic estimates
  • 27. 27
  • 28. 28
  • 29. Up to 25 percent more workers may need to switch occupations than before the pandemic, and the retraining challenge may be harder 29
  • 30. 30
  • 31. 31
  • 32. 32
  • 33. Companies and policy makers can help facilitate workforce transitions