Research shows that the racial wealth gap between Black and White families continue to grow, with the average White family holding more than ten times the wealth of the average Black family. And a new report published by McKinsey & Company says that the increase in companies adopting automation and other digital technologies will only make matters worse.
“The Future of Work in Black America” projects that many Black people, especially men, will have a harder time finding work as the rise of artificial intelligence and other technology threatens to replace working class jobs. By 2030, Black men between ages 18 and 35 who do not have a college degree will be hit hardest. Black folks who live in areas where technology is scarce are also at risk for future unemployment, which could have a hugely negative impact on the generational wealth and stability of Black families. Meanwhile, Black women lead in careers that are seeing significant growth, including in-home health aides, nursing assistants and personal care aides.
According to McKinsey, if the nation did close the racial wealth gap, the U.S. economy could net between $1.1 trillion and $1.5 trillion by 2028.
Key takeaways pulled from the report:
African Americans are overrepresented in occupations likely to be most affected by automation, and this remains accurate for our 2030 projection.
African Americans tend to hold occupations at the lower end of the pay scale.
The largest amount of projected African American job disruption from automation could be in areas with the largest African American populations—particularly in megacities, such as the counties that include Chicago and Washington, DC, and in stable cities, such as the counties that include Detroit and Baltimore.
African American women may fare better than African American men in terms of job displacement.
Read the complete report here.