British employers are showing increasing caution in hiring for roles that are likely to be disrupted by artificial intelligence (AI), according to a recent study. The report indicates that AI is adding to the ongoing slowdown in the UK’s job market.
Job Listings Fall, Especially in AI-Exposed Sectors
Overall job postings in the UK have dropped as companies attempt to cut costs amid weak economic growth and high interest rates. Online job ads fell by 31% in the three months leading up to May compared to the same period in 2022.
However, roles likely to be affected by AI have seen an even sharper decline. Positions in sectors such as technology and finance dropped by 38% — almost double the average decrease. This trend is adding more pressure to the UK’s labour market, which is already seeing job cuts in hospitality and retail due to recent tax increases.
Sharp Drop in Demand for AI-Sensitive Jobs
Over the past three years, there has been a significant decline in demand for professionals like software developers, consultants, and graphic designers — with job postings dropping by more than 50%. While some of this is due to broader economic factors, the decline is also visible in strong-performing sectors like IT and professional services.
AI Begins to Influence Hiring Decisions
Pawel Adrjan, director of EMEA economic research at the Indeed Hiring Lab, noted that employers are reducing hiring in fields related to building or using AI technologies. For example, job postings in mathematics — which often include data science and analytics roles — have fallen by half since before the pandemic, even though they have the most AI-related keywords in listings. In contrast, industries like real estate and education, where AI use is limited, have seen an increase in job vacancies.
Entry-Level Roles Under Threat
Entry-level jobs, especially those involving routine tasks like reviewing documents or summarising meetings, are now more vulnerable to automation. Since the launch of ChatGPT at the end of 2022, job listings for internships, apprenticeships, and junior roles not requiring a degree have fallen by almost one-third, according to data from Adzuna.
Expert Warns of Large-Scale Job Loss by 2045
Adam Dorr, research director at RethinkX, warned in an interview that AI and robotics could lead to major job losses over the next two decades. He said that by 2045, most human jobs could become “obsolete” as machines take over nearly all tasks faster and at a lower cost. His team, which studied over 1,500 major technological shifts, found that once a new technology is widely adopted, it typically replaces older systems within 15 to 20 years.
Microsoft Shifts Focus Amid Job Cuts
Microsoft has laid off more than 15,000 employees in 2025, including around 9,000 in a recent round of job cuts. The layoffs mainly impacted departments such as Xbox and sales. The company is now urging remaining employees to improve their AI skills as it turns more focus towards AI-driven operations.
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