NEWS & RESOURCES

How is AI impacting the UK labour market?

AI for HR management

With AI becoming more prevalent in employment, we are starting to see the evidence of its impact on employment both in terms of people practices, but also on the UK labour market.


Entry-Level Job Decline Since the Launch of ChatGPT

In a recent study by recruitment firm Adzuna, their research found that the number of entry level jobs had fallen by 31.9% since the launch of ChatGPT in November 2022.
They report a decline in jobs such as graduate positions, apprenticeships and the more junior roles in organisations.


UK Government Report on AI and the Labour Market

The UK Government published a year later in November 2023, their research on how AI impacts UK jobs and training.
Their report ‘The impact of AI on UK jobs and training’, found:

Estimates that between 10-30% of jobs could be automatable, giving AI the potential to boost productivity and create new, high-value employment opportunities.
To harness these benefits, the UK education system and employers will need to adapt, ensuring the workforce is equipped with the necessary skills.


Occupations Most Exposed to AI Disruption

Occupations most exposed to AI include roles such as:

  • Management consultants and business analysts

  • Accountants

  • Psychologists

  • Teaching occupations (particularly due to large language models)

Occupations identified as having “high automation” potential by the International Labour Organisation (ILO) also tend to have high AI exposure scores, including:

  • Authors, writers and translators

  • Bank and post office clerks

  • Call and contact centre occupations

  • Telephone salespersons


AI Exposure by Skill Level and Demographic

When looking at exposure by skill level, professional occupations (skill level 4), typically requiring a degree or equivalent, are more exposed to AI than other occupations.

Early-career employees with more advanced qualifications are typically in jobs with higher AI exposure.
For instance, those with a Level 6 qualification (degree equivalent) are more likely to work in a highly exposed job than those with a Level 3 qualification (A-Levels equivalent).

Female students are in training paths that lead to jobs with higher overall exposure to AI compared to male students.

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