This week, what Americans think about the state of economic opportunity. Plus, China’s $5 trillion consumption growth opportunity, and McKinsey’s annual reading list is back. |
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This spring, McKinsey set out to understand what Americans think about their economic standing, their views on economic opportunity, and the barriers between themselves and a more inclusive and prosperous future. Our inaugural American Opportunity Survey revealed that fewer than half of all respondents were optimistic about access to economic opportunity. Half reported being on the financial brink—or being unable to cover their living expenses for more than two months in the event of job loss. |
Obstacles remain high for many. While economic conditions have improved since the spring, longer-term issues stand out: women and people of color are concentrated in occupations with the highest job and income losses. Many respondents to our survey noted that preexisting inequalities were exacerbated during the depths of the COVID-19 crisis, with some saying that their identity hampers their career prospects. Black and Hispanic/Latino respondents were 50 to 70 percent more likely than White respondents to say that they had student or medical debt, which is both indicative of, and exacerbated by, a long-established racial wealth gap. Access to healthcare and childcare were both big challenges, respondents said. |
The optimists. At the same time, immigrant respondents were among the most optimistic about economic opportunity; half of first-generation immigrants said that most Americans have opportunities to find good jobs. Black and Hispanic/Latino respondents were among the most optimistic despite being more likely to report barriers to opportunity. Conversely, rural respondents were the most pessimistic about the national economy. Such revealing sentiments make a strong case for inclusive growth that is both long term and sustainable. A recent McKinsey report shows how public-, private-, and social-sector leaders can work together to make inclusion a foundational principle of the economic well-being for all citizens. |
Solutions. There are several key challenges that, if addressed, can help the US make significant strides toward economic opportunity. Among them are the issues that disproportionately affect women, such as investing in affordable childcare. Regarding racial equity in the workplace, data show that addressing the major barriers that hold back Black-employee advancement can help these employees reach talent parity across all levels in about 25 years (on the current trajectory, it will take about 95 years). |
Investing in workers. Results of a McKinsey global survey suggest that there will be an increased demand for contractors and temporary workers after the pandemic, which could have a significant impact, as 62 percent of such workers prefer permanent employment. Addressing the need for convenient and affordable physical and mental-health care could increase Americans’ overall well-being; previous McKinsey research suggests that this is possible. |
Lifting all. “The world breaks everyone and afterward many are strong at the broken places.” So said Ernest Hemingway, and his words sum up what many Americans have faced throughout the pandemic: strength forged through the simultaneous challenges of physical health, social upheaval, and significant loss. A strong foundation for long-term economic renewal means fostering social mobility. To rebuild lives and livelihoods, it will take not only hope but also hard work, as well as revisiting the economic lessons from crises past. |
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OFF THE CHARTS |
Biotech booms |
Biotech companies continue to attract major funding from both public and private sources. In 2020, global venture-capital funding and deals reached their highest ever level of $36.6 billion, while IPOs raised more than twice the amount of capital, compared with 2019. A recent McKinsey biotech article looks at Europe, where world-class science and innovation need to be matched with stronger scale-up capabilities and a broader funding base if the region is to emerge as a leader in biotech.
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INTERVIEW |
Be ‘willing to follow through’ |
As chairman and CEO of State Street Corporation, Ron O’Hanley oversees one of the largest and oldest American financial institutions, with $38 trillion in assets under custody and administration, and $3.5 trillion in assets under management. In this episode of the Inside the Strategy Room podcast, O’Hanley talks about why State Street’s focus on environmental, social, and corporate governance (ESG) issues has grown dramatically, what the COVID-19 pandemic has revealed about gaps in corporate America’s resilience, and how State Street is disrupting its own business. |
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MORE ON MCKINSEY.COM |
Seven segments shaping China’s consumption landscape | China offers a $5 trillion consumption growth opportunity over the next decade, according to new research. How well do we know China’s consumers? This article explores seven types of consumers driving this market. |
The global economic picture is mixed | New Global Economics Intelligence data show that industrial activity has strengthened and consumer demand has returned while inflation is accelerating. However, the effects of the latest pandemic wave remain to be seen and measured. |
The growth triple play | Companies that integrate creativity, analytics, and purpose are delivering at least two times the growth of their peers. Chief marketing officers can capture these gains, but to do so they must act on new ideas and be rigorous about data. |
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WHAT WE’RE READING |
Reality or respite? It depends |
McKinsey’s annual reading list just dropped, and it’s packed with favorite picks from dozens of leaders from the corporate world, media, and beyond. One theme that stood out is that societies, leaders, and organizations are still grappling with all that has happened since the start of 2020—and the uncertainties of what’s to come. This year, many people seem to be either trying to come to grips with new realities or seeking respite from them. It’s perhaps unsurprising, then, that the most robust categories among the list are fiction, history, and politics. |
Check out the array of picks, plus other summer book recommendations from the New York Times, the Wall Street Journal, the Financial Times, and more. |
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— Edited by Vanessa Burke |
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Share this what we’re reading
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BACKTALK |
Have feedback or other ideas? We’d love to hear from you. |
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